The US accuses Meta of trying to eliminate competition with the purchase of WhatsApp and Instagram.

Meta’s digital empire, Facebook until a few years ago, is at risk of falling apart. A trial, which has been brewing since 2020, began today in Washington, D.C., in which the United States government, through the Federal Trade Commission (FTC), has accused the technology company led by Mark Zuckerberg of attempting to suppress competition in the social media space through the purchase of WhatsApp and Instagram. These platforms were developed by third parties and acquired by Facebook in the first half of the last decade.

If the judge rules against the company’s interests, it may be forced to divest these two apps, which could be a fatal blow to Meta’s business, as it is estimated that the firm derives approximately half of its advertising revenue in the United States from Instagram.

During the trial, Daniel Matheson, the lead litigator for the FTC, argued before James Boasberg, the judge presiding over the case, that by acquiring ownership of WhatsApp and Instagram, Meta made it clear that, for the company, “competing (with other platforms) was too tough,” and that “it would be easier to buy its rivals” outright. This, according to the agency, led the company to pay $1 billion for Instagram in 2012 and $22 billion for WhatsApp in 2014. As a result, “consumers were left without reasonable alternatives” outside of the giant. According to the FTC, Meta’s acquisitions also sought to prevent apps from falling into the hands of other big tech companies, such as Google.

Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *