Meta has wrapped up its defense against an antitrust lawsuit, arguing that Instagram and WhatsApp can’t be broken up as they’ve become too integrated into the ecosystem. The company claims these apps are unlikely to wither without Meta’s control, and instead have become more useful and accessible to consumers.
In a key argument, Meta pointed out that TikTok poses real competition to its products in the market for social media services focused on entertainment like YouTube. However, Judge James Boasberg rejected this point, saying that considering an infinite range of substitutes is not required by antitrust law.
Boasberg also questioned whether Meta’s dominant position is due to its control over user time and attention, creators’ content, and ad dollars. The judge noted that Meta has already added most of the nation’s eligible users and that competing for attention with apps like TikTok and YouTube is more important than their sheer size.
Meta argued that breaking up Instagram and WhatsApp would stifle innovation, citing its own success story as a “proud American” company. The FTC claims that these apps are part of a broader market where personal social networking services dominate, which Meta disputes.
The judge will now decide whether the experience of connecting with friends on social media is still an important enough market for Meta to dominate.
Source: https://www.theverge.com/antitrust/673923/meta-case-ftc-antitrust-trial