Meta, formerly Facebook, is facing a significant antitrust lawsuit focused on its acquisitions of Instagram and WhatsApp. The Federal Trade Commission argues that these purchases were part of a strategy to eliminate competition and maintain a monopoly in social networking. The court case could reshape antitrust laws by bringing the 'buy or bury' strategy into focus. While Meta claims it faces competition from other platforms, the outcome of this case could influence the future of tech acquisitions and startups in Silicon Valley.
Meta broke the law by acquiring nascent competitors to maintain its monopoly in social networking, the FTC argues. Regulators are seeking to force Meta to divest Instagram and WhatsApp.
The outcome of what is expected to be a multiweek trial could reshape the U.S. antitrust landscape as companies face intense scrutiny over mergers and acquisitions.
The government's legal argument hinges on showing that Meta would not be as dominant, and would not have stayed as dominant, if it hadn't acquired Instagram and WhatsApp.
Legal experts said the FTC faces an uphill battle to prove its case, particularly in showing the effect of acquisitions on Meta's market dominance.
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