A US federal judge on Tuesday threw out the government’s major antitrust lawsuit against Meta, ruling that the company’s purchases of Instagram and WhatsApp did not amount to an illegal social media monopoly.
The decision marked Meta’s biggest win in a five-year legal fight that began when the Federal Trade Commission (FTC) accused the company of buying Instagram in 2012 and WhatsApp in 2014 to crush rising competitors. Judge James Boasberg of the Washington federal district court concluded that Meta still faces strong competition from platforms such as TikTok and YouTube, making it impossible for the company to control the market.
FTC’s argument falls short
The FTC had argued that Facebook, Instagram, Snapchat, and smaller platform MeWe operate in a separate “friends and family” social networking market, distinct from video-driven apps like TikTok and YouTube. The government insisted this unique space allowed Meta to grow its products and earn billions in profits each quarter.
However, Judge Boasberg ruled that this separation no longer reflects today’s reality. He wrote, “Meta holds no monopoly in the relevant market,” noting that Facebook and Instagram now function mainly as video-recommendation platforms, similar to TikTok.
He pointed to data showing Americans spend only 17% of their time on Facebook viewing posts from friends, and just 7% on Instagram. Most users now watch algorithm-driven short videos, including Reels.
Boasberg added, “Facebook, Instagram, TikTok, and YouTube have thus evolved to have nearly identical main features,” making them direct substitutes for each other.
Meta celebrates ruling
Meta welcomed the judge’s finding that it “faces fierce competition,” and the company said it was ready to work with the Trump administration “and to invest in America.”
Before the trial began in April, CEO Mark Zuckerberg made several trips to the White House in an effort to convince President Donald Trump not to let the FTC continue the case. The trial still moved forward, and both Zuckerberg and senior Meta executives testified.
Major setback for US antitrust efforts
The ruling dealt another blow to US regulators, who have tried to take tougher action against major tech firms. The government has recently launched five major antitrust cases targeting Google, Apple, Amazon and Meta.
In another high-profile case, a different judge rejected the government’s request to break up Google, even after ruling that Google had acted as an illegal monopoly in search. That judge agreed with arguments that new technologies like ChatGPT weakened Google’s dominance.
Vidushi Dyall of the Chamber of Progress, a tech industry group, praised Boasberg’s reasoning. She wrote on X, “Judge Boasberg correctly grasps how dynamic digital markets are. Even large tech companies still face intense competition and…new players have disrupted the position of incumbents.”