Meta in Court: Will There Be a Sale of Instagram and WhatsApp?

The trial that began on Monday in Washington could result in Meta being forced to sell Instagram and WhatsApp. The U.S. Federal Trade Commission (FTC) claims that Meta, then known as Facebook, acquired these platforms to eliminate competition and solidify its monopoly in the social media market. Although the FTC initially approved these acquisitions, it is now seeking to overturn those decisions, stating that Meta concealed key information during the approval process, according to the Wall Street Journal.

Meta defends itself by claiming it faces strong competition from platforms like TikTok, YouTube, and iMessage, and that the acquisitions have benefited consumers through improved services and innovations. They also emphasize that the focus of their platforms has shifted from personal connections to a broader range of content and entertainment, further challenging the FTC’s claims of monopoly in the personal social networking segment. The outcome of this trial could have far-reaching consequences for the technology industry, particularly regarding future acquisitions and market regulation.

Zuckerberg’s Messages are Key

In this lawsuit, a key piece of evidence is Zuckerberg’s email from 2012 proposing the acquisition of Instagram to ‘neutralize a potential competitor.’ According to the NYT, Zuckerberg wrote that ‘Messenger does not surpass WhatsApp. Instagram was growing faster than us, so we bought them for a billion dollars… that’s not exactly killing competition.’

This and other evidence are expected to convince the court that Facebook built dominance by eliminating rivals, violating antitrust laws. The FTC must prove that Meta would not have achieved its current position without the acquisitions of Instagram and WhatsApp (in 2012 and 2014). Legal experts in the U.S. consider this extremely difficult, and overturning such old mergers is exceptionally rare.

In the lawsuit, the FTC claims that Meta overpaid for Instagram and WhatsApp to maintain its monopoly in the social media market, where competitors like Snapchat and MeWe exist. Allegedly, after eliminating rivals, Meta reduced the quality of the platforms, limiting user privacy and increasing the number of ads. If the lawsuit succeeds, the FTC could demand the breakup of Meta, including the separation of WhatsApp and Instagram. Losing Instagram would be a significant blow, as Instagram is expected to generate more than half of Meta’s advertising revenue in the U.S. by 2025, while Facebook is losing significance.

Trump as the Savior?

As this trial continues, there is increasing speculation that the Trump administration may try to intervene. Ramnath Chellappa, an information systems expert at Emory University, stated that in recent months Zuckerberg has been ‘courting’ President Trump in hopes of resolving this antitrust lawsuit, according to Wjac.

Zuckerberg has even made political contributions, including one million dollars donated to Trump’s inauguration fund. The donation came just a few months after he acknowledged that Facebook had yielded to the Biden administration’s demands regarding content, as well as censorship powers.

– I firmly feel that we should not compromise our content standards due to pressure from any administration in either direction – Zuckerberg wrote to the House Judiciary Committee in August 2024.

But as the trial unfolds, Madeline Summerville, an attorney and political analyst, said it is worth watching if President Trump decides to get involved.

– There are very few ways he could directly intervene. But there are many ways he could indirectly intervene to influence the conversation around it – Summerville said.