Outlook Business Desk
A US federal judge has rejected the Federal Trade Commission’s antitrust lawsuit against Meta, bringing a five-year legal battle to an end over claims that the company held monopoly power in the social media market.
In December 2020, the FTC filed an antitrust lawsuit against Meta, claiming the company sought to dominate social media by acquiring Instagram in 2012 and WhatsApp in 2014, reducing competition in the market.
Judge James Boasberg determined that Meta faces significant competition from platforms such as TikTok and YouTube, concluding that the company does not hold monopoly power in the social media market.
The court highlighted that Meta’s rivals, including TikTok and YouTube, provide alternatives for users, preventing Meta from controlling prices, engagement or market direction in the social media space.
The Federal Trade Commission argued that Facebook, Instagram, Snapchat, and smaller platform MeWe operate in a separate social media market, distinct from video-focused platforms such as TikTok and YouTube.
Judge Boasberg ruled that the FTC’s market distinction no longer applies, noting that Facebook and Instagram now focus on algorithm-driven short videos, making them directly comparable to TikTok and confirming that Meta holds no monopoly.
The court highlighted that Americans spend just 17% of their time on Facebook viewing friends content and only 7% on Instagram. Most users now engage with AI-recommended “Reels,” short videos from strangers, shifting the platforms’ core focus.
Meanwhile, Judge Boasberg noted that Facebook, Instagram, TikTok, and YouTube now share nearly identical core features, with users treating them as substitutes. The ruling marks a setback for US antitrust efforts targeting Big Tech, reflecting mixed results in recent legal battles.
In recent years, the US government has filed five major cases against tech giants, including two targeting Google, as well as suits against Apple and Amazon. A separate judge recently rejected a government attempt to break up Google over monopoly claims.