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💣Meta under scrutiny over "buy or bury" strategy

💣Meta under scrutiny over "buy or bury" strategy

The Federal Trade Commission (FTC) has initiated a significant antitrust lawsuit against Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp. This case, currently unfolding in a U.S. federal court, centres on allegations that Meta has unlawfully maintained a monopoly in the personal social networking market through anti-competitive practices.​

🔍 Key Allegations

The FTC contends that Meta engaged in a "buy or bury" strategy, wherein it acquired potential rivals—specifically Instagram in 2012 and WhatsApp in 2014—to neutralize competitive threats. Internal communications, including a 2012 memo from CEO Mark Zuckerberg suggesting that acquiring Instagram could "neutralize a potential competitor," are cited as evidence of this intent .

Additionally, the FTC alleges that Meta imposed restrictive conditions on third-party developers, limiting their access to Facebook's platform to suppress emerging competition.

🏛️ Legal Proceedings

  • Initial Filing: The lawsuit was originally filed in December 2020 but was dismissed in June 2021 due to insufficient evidence.​
  • Amended Complaint: The FTC refiled an amended complaint in August 2021, which the court allowed to proceed in January 2022.
  • Trial Commencement: The trial began on April 14, 2025, with Judge James E. Boasberg presiding. Mark Zuckerberg testified on the first day, defending the acquisitions as beneficial for users and innovation.​

🛡️ Meta's Defense

Meta argues that the acquisitions of Instagram and WhatsApp were lawful and approved by regulators at the time. The company maintains that these platforms have thrived under Meta's ownership, offering enhanced features and security. Meta also emphasizes the competitive landscape, highlighting rivals like TikTok and YouTube as evidence that it does not hold a monopoly.​

⚖️ Potential Outcomes

If the court rules against Meta, it could mandate the divestiture of Instagram and WhatsApp, effectively breaking up parts of the company. Such a decision would have significant implications for the tech industry, potentially setting a precedent for how antitrust laws are applied to major technology firms .​

Sources

  • https://www.wsj.com/tech/meta-fights-to-keep-instagram-and-whatsapp-as-antitrust-trial-begins-8c6911d9
  • https://www.vanityfair.com/news/story/meta-ftc-lawsuit-zuckerbergs-words
  • https://www.ftc.gov/news-events/facebook-q-a
  • https://nypost.com/2025/04/14/business/zuckerberg-sandberg-in-hot-seat-as-ftc-trial-seeking-meta-breakup-kicks-off/
  • https://www.youtube.com/watch?v=lTiAwwuvjSY

April 15, 2025

Jaeson Sha By Jaeson Sha


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