Facebook must face FTC antitrust lawsuit, judge rules

The Federal Trade Commission’s antitrust lawsuit against Facebook’s parent company, Meta, will go forward, U.S. District Chief Judge James E. Boasberg ruled on Wednesday. The FTC took issue with how Facebook acquired Instagram in 2012 and WhatsApp in 2014 and accused the company of forming a monopoly. Facebook purchased the apps to protect itself against the fast-growing competitors, the FTC’s complaint alleged. Owning and operating Instagram and WhatsApp created a moat around Meta that neutralized threatening competition, according to court documents.

However, Meta has argued that the acquisitions boosted competition in the tech realm by allowing increased rivalry with other tech and media giants like Apple and Google. The FTC initially filed antitrust charges against Meta in 2020 which Boasberg later dismissed in June 2021. The government filed an amended complaint in August which Boasberg ruled may now go to trial.

What was Boasberg’s reason for approving the case now? In a memorandum released Wednesday, Judge Boasberg called the legal jousting on both sides impressive. He went on to add that they left no clear victor, and thus the case must go to trial. Boasberg scheduled a conference for Nov. 25 to discuss trial plans. Federal prosecutors launched several antitrust crusades against big tech companies in recent years, including Amazon, Apple, and Google.

How have both sides responded to the case moving forward? FTC spokesman Douglas Farrar told WORLD the effort to curtail Meta’s social media monopoly has been bipartisan. Regulators hope to revive competition and innovation in the social media ecosystem, Farrar said in the Wednesday statement. WORLD reached out to Meta for a statement and, as of Wednesday evening, had not received a reply.

Dig deeper: Read Leah Savas’ report on the FTC slapping Meta with a $5 billion fine for privacy violations in 2019.