Meta Platforms is petitioning a federal court to reject the Federal Trade Commission’s (FTC) antitrust lawsuit, arguing the regulatory body has not presented sufficient evidence to support its accusations of monopolistic behavior.
In a recent legal move, Meta filed for summary judgment, asserting the FTC’s failure to demonstrate any concrete evidence of the alleged market or consumer harm caused by Meta’s acquisitions of Instagram and WhatsApp. This step initiates a series of legal exchanges before a judge determines the lawsuit’s fate. A favorable decision for Meta could potentially dismiss the case, whereas identifying unresolved factual disputes could lead to a trial.
This lawsuit’s origins trace back to 2021 when DC District Court Judge James Boasberg initially dismissed the FTC’s complaint but later allowed an amended version to proceed, noting it provided a more substantial basis for the allegations.
Meta challenges the FTC’s market definition, critiquing it as overly restrictive. The FTC identified the market as personal social networking services (PSNS), a classification including Facebook, Instagram, Snapchat, and MeWe, but notably excluding TikTok and YouTube. Meta disputes this exclusion, arguing for a broader market definition that acknowledges the interchangeability of content across platforms, especially in shortform video features.
Furthermore, Meta contends that the FTC’s case lacks proof that Meta’s marketplace dominance, defined as holding at least a 60% market share, was solidified by excluding services like YouTube and TikTok. Additionally, Meta argues the FTC cannot establish that the Instagram and WhatsApp acquisitions detrimentally impacted consumers. Notably, these acquisitions occurred roughly a decade ago, with Meta highlighting the substantial consumer benefits that have since emerged from these platforms, including significant service enhancements and innovation.
In a public statement, Meta warned of the potential innovation stifling implications of revisiting and challenging previously approved acquisitions, emphasizing the importance of finality in such deals.
The FTC is scheduled to submit its counterarguments by May 24th, marking the next phase in this ongoing legal battle.
