Meta beats FTC antitrust case that sought breakup of Instagram, WhatsApp

Core Insights - Meta successfully avoided a forced selloff of Instagram and WhatsApp after winning a significant antitrust case against the Federal Trade Commission (FTC) [1][2] - The ruling concluded that Meta does not hold a monopoly in the relevant market, as stated by US District Judge James Boasberg [2][8] - The case marks the end of a five-year legal battle, during which the FTC accused Meta of employing a "buy or bury" strategy to eliminate competition [4][5] Legal Proceedings - The FTC's argument centered on the claim that Meta had a monopoly over "personal social networking" apps, which was ultimately rejected by the court [4][5] - Judge Boasberg noted that the FTC struggled to define the boundaries of Meta's product market due to the dynamic nature of social media [6] - The court's decision emphasized that the FTC failed to demonstrate that Meta continues to hold monopoly power [8] Market Competition - Meta argued that it faces significant competition from platforms like Google-owned YouTube and TikTok, countering the FTC's claims [5][9] - The ruling acknowledged the fierce competition Meta encounters, which was highlighted by a spokesperson's statement on the benefits of their products for users and businesses [9] Internal Insights - The case revealed internal communications from Meta, including an email from Zuckerberg admitting that acquiring Instagram was aimed at neutralizing a competitor [14] - Testimony from Instagram co-founder Kevin Systrom indicated that Zuckerberg viewed Instagram as a threat to Facebook's core business [14] Market Reaction - Despite the favorable ruling, Meta's shares experienced a decline of approximately 1% in trading, attributed to broader concerns regarding surging AI valuations in the tech sector [13]