Meta CEO Mark Zuckerberg took the witness stand Monday as the Federal Trade Commission (FTC) brought a landmark antitrust trial against the tech company. The 40-year-old exec rejected allegations that Meta sought to unlawfully stifle market competition through its 2012 and 2014 acquisitions of Instagram and WhatsApp.
The FTC claims that Meta now operates an illegal monopoly over apps for sharing content with friends and family, secured in part due to these acquisitions. Internal communications from the company, dating back to 2008, suggest it would be easier to buy out competitors rather than compete head-to-head.
If the FTC is successful, Meta could be forced to divest Instagram and WhatsApp, threatening its dominance in social media. Spinning off these services could result in billions of dollars in lost ad spend.
The FTC’s case hinges on a narrowly defined market, which excludes other social platforms like Snapchat, TikTok, and YouTube. Zuckerberg took aim at this definition, downplaying the role of friend-to-friend sharing on Meta platforms, stating it accounts for just 20% on Facebook and 10% on Instagram.
Meta’s defense argues that the relevant market should be broader, competing against other social giants. The trial is expected to last up to two months, with U.S. District Judge James Boasberg presiding over the case.
Source: https://www.adweek.com/media/zuckerberg-rejects-ftc-arguments-meta-antitrust-trial