Meta CEO Mark Zuckerberg faced tough questions on Monday as he took the stand in a landmark US antitrust trial. The trial revolves around accusations that Meta, formerly known as Facebook, illegally monopolized the social media market by acquiring Instagram and WhatsApp.
The US Federal Trade Commission (FTC) has accused Meta of stifling competition through these acquisitions, which could potentially lead to Meta being forced to spin off these platforms. This trial could set a new standard for how tech mergers are handled in the future.
During the trial, FTC attorney Daniel Matheson focused on email exchanges that suggested Meta acquired Instagram and WhatsApp to maintain its dominance in the social networking space. Zuckerberg downplayed these emails, stating that he was simply frustrated with the lack of progress on developing a photo-sharing app to compete with Instagram.
Matheson questioned Zuckerberg about his concerns regarding Instagram’s rapid growth, to which Zuckerberg admitted that it was a point of frustration for him. However, he maintained that he was always pushing his teams to do better and denied any malicious intent in acquiring these platforms.
In his opening statements, Matheson accused Meta of using its position to generate huge profits while consumer satisfaction has dropped. He claimed that Meta was “erecting a moat” around its interests by acquiring Instagram and WhatsApp. On the other hand, Meta’s attorney, Mark Hansen, argued that the FTC was making a “grab bag” of arguments that were baseless. He contended that Meta faces plenty of competition and has made improvements to the platforms it acquired.
This trial is not just a legal battle between Meta and the FTC, but also a test of the government’s ability to challenge Big Tech. The lawsuit was filed in 2020 during former President Donald Trump’s term, alleging that Meta bought Instagram and WhatsApp to eliminate competition and establish an illegal monopoly.
Overall, the outcome of this trial could have far-reaching implications for the tech industry and how future mergers and acquisitions are regulated. It remains to be seen how this case will unfold and what impact it will have on the social media landscape.
