"A federal judge today handed Meta a monumental victory, ruling against the Federal Trade Commission in an antitrust suit that tried to upend the $1.5 trillion Menlo Park-based company's purchase of two of its rivals, Instagram and WhatsApp. The FTC sued Meta in 2020 alleging anti-competitive behavior following an investigation that began during the first Trump administration. The federal suit alleged that Facebook, which later became Meta, overpaid to acquire Instagram in 2012 and WhatsApp in 2014 as part of a strategy to eliminate social networking competitors."
"Multiple media outlets reported that U.S. District Judge James Boasberg agreed with the company's argument in an opinion released today, saying that TikTok and YouTube prevent Meta from monopolizing the social network market. The judge said Meta's apps and the social media landscape have changed since the FTC filed its case, most recently because of AI-generated content, which undermined the agency's arguments."
"In legal filings, FTC lawyers said a judge should order Meta to spin off Instagram and WhatsApp into separate companies. In a statement to the media, Meta welcomed the decision: "The court's decision today recognizes that Meta faces fierce competition. Our products are beneficial for people and businesses and exemplify American innovation and economic growth. We look forward to continuing to partner with the Administration and to invest in America.""
A federal judge ruled in favor of Meta, dismissing the FTC's antitrust challenge to Meta's acquisitions of Instagram and WhatsApp. The FTC alleged that Meta overpaid for Instagram (2012) and WhatsApp (2014) to eliminate competitors and sought court-ordered divestiture. Judge James Boasberg concluded Meta does not hold a monopoly in the relevant market, citing competition from platforms such as TikTok and YouTube and changes to the social media landscape, including AI-generated content. The federal case originated from a 2020 suit, proceeded to trial in April and May, and resulted in Meta defending its market position successfully.
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