Meta Platforms(US:META) Sou Hu Cai Jing·2025-04-27 10:35Core Viewpoint - The U.S. Federal Trade Commission (FTC) has initiated a historic antitrust lawsuit against Meta, accusing the company of abusing its market power through acquisitions of Instagram and WhatsApp, aiming to dominate the social media market [1][3]. Group 1: Antitrust Lawsuit - The FTC's lawsuit claims that Meta has employed a "buy or bury" strategy to eliminate potential competitors, with evidence including a message from Mark Zuckerberg discussing the importance of "destroying" Instagram [1]. - Zuckerberg is personally testifying in court to address the FTC's allegations, having initially sought to settle the case with a significantly lower fine than the FTC's expectations [3][5]. - The FTC, backed by the Department of Justice, has imposed a hefty $30 billion fine on Meta, which could severely impact the company's financials, as it represents a substantial portion of Meta's projected annual profits [3][4]. Group 2: Financial Impact - Meta's core advertising business is projected to suffer a loss of $7 billion this year due to the impact of Trump's tariff policies on Chinese retail companies, which may lead to reduced advertising budgets on Meta's platforms [4]. - In its latest annual report, Meta disclosed that its revenue from China for 2024 is expected to be $18.35 billion, accounting for slightly over 11% of its total revenue [4]. - The potential fine and the anticipated loss in advertising revenue could significantly strain Meta's financial health, as the fine alone could take away 80% of its projected profits for the year [3][4]. Group 3: Political and Regulatory Context - The lawsuit and fine are perceived as a demonstration of political power, with implications for the broader tech industry, which has enjoyed a relatively lenient regulatory environment until now [7]. - The FTC's actions are seen as a response to concerns over tech monopolies, signaling a shift in regulatory attitudes towards major tech companies [7]. - Zuckerberg's attempts to negotiate a lower settlement and his outreach to Trump highlight the intertwining of business interests and political dynamics in the current regulatory landscape [4][7].