If you’ve ever wondered what could happen to your favourite social media apps—Instagram and WhatsApp—there’s a major legal battle unfolding that could have a big impact on Meta. The company is facing a lawsuit from the US Federal Trade Commission (FTC), which accuses Meta of buying Instagram and WhatsApp to eliminate competition. Here’s what you need to know about the case.
On Wednesday, a Washington judge ruled that Meta must face a trial in a case filed by the FTC in 2020, which claims that Meta’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were part of a strategy to crush competition. The FTC argues that Meta overpaid for these platforms, not to compete fairly, but to eliminate potential threats to its dominance in social media.
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The lawsuit highlights how Meta’s buyouts of Instagram and WhatsApp have given it an unfair advantage by absorbing competitors. The FTC believes that Meta’s moves aimed to prevent emerging platforms from gaining ground, reports Reuters.
Although Judge Boasberg allowed the case to move forward, he dismissed some of the FTC’s claims, such as the idea that Facebook restricted access to its platform for third-party developers unless they agreed not to compete with Facebook’s core services. However, the FTC’s core accusation—that Meta bought Instagram and WhatsApp to eliminate competition—remains a central part of the case.
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Meta, on the other hand, is confident that it will win in court. A spokesperson for the company stated, “We are confident that the evidence at trial will show that the acquisitions of Instagram and WhatsApp have been good for competition and consumers.” Meta argues that these acquisitions actually helped to improve competition in the industry, rather than hinder it.
This legal battle could lead to significant consequences for Meta, but the exact outcome is still unclear.