Meta Platforms Inc. appeared in court on Monday in a major antitrust case that could result in the company giving up ownership of Instagram and WhatsApp.
The case, which has been ongoing since 2020, was filed by the U.S. Federal Trade Commission (FTC) and claims that Meta bought these two platforms mainly to block competition and hold on to its power in the social media world.
The lawsuit accused Meta of using its financial strength to buy Instagram in 2012 and WhatsApp in 2014 instead of competing with them fairly.
The FTC said Meta made these moves to shut down any rising rivals that could challenge Facebook’s position.
These platforms later played a big role in helping Meta adjust from desktop use to mobile, attracting younger users and maintaining its relevance in a fast-changing tech space.
Meta disagreed with the FTC’s claims and insists it faces stiff competition from platforms like TikTok, YouTube, and Apple’s iMessage.
The company argued that it is unfair to be targeted for acquisitions that were reviewed and approved more than ten years ago.
It also said that forcing a breakup now could harm American innovation and give more advantage to foreign tech companies.
The case is being heard by U.S. District Judge James Boasberg, who has raised questions about how the FTC defines Meta’s market but allowed the trial to go forward.
If the court rules against Meta, it could be asked to separate from Instagram, which now brings in more than half of the company’s ad revenue in the United States.
This case is one of several legal actions against major tech companies in the U.S. as the government looks into whether firms like Google and Amazon also used their size to weaken competition.
Legal experts are watching closely, saying the result could change how big tech companies are handled under laws that were written long before the digital age.
