Meta Platforms CEO Mark Zuckerberg rose to his side in Washington, DC court on Monday to defend his social media company from federal claims that the tech giant is monopoly.
Meta, the parent company of Facebook, Instagram and WhatsApp, faces the Federal Trade Commission on Monday. For Zuckerberg, the incident allows us to determine whether the business empire he began building, while Harvard students are forced to fall apart.
The trial is the first major test of the FTC’s willingness under President Trump, and challenges Big Technology, a long-time target for Republicans. The lawsuit was first filed against Meta in 2020 during Trump’s first term, before being amended in 2021, and against Meta, which was later called Facebook.
In the complaint, the FTC accused Meta of “anti-competitive conduct” and argued that ownership of Instagram and WhatsApp overcontrolled the social media market.
Dana Verkouteren
“There’s nothing wrong with meta innovation,” said Daniel Matheson, the FTC’s lead lawyer, in an opening statement Monday, saying, “What happened next was a problem.”
During testimony on Monday, Zuckerberg defended his decision to buy Instagram and opposed the FTC’s claim that he had not invested in developing the app.
Instagram and WhatsApp, purchased by Facebook in 2012 and 2014, respectively, have grown into social media powerhouses.
To recover the competition, Meta must say goodbye to Instagram and WhatsApp, the agency said in court filings. The FTC also hopes that Meta will provide the government with advance notice of future mergers and acquisitions.
A landmark trial is underway and here’s what you need to know.
How long will the metatrial last and who will testify?
The trial, which begins Monday in federal court in Washington, D.C., is expected to last several weeks.
US District Judge James Boasberg can see a variety of witnesses, including Meta CEO and founder Zuckerberg. Former Meta Chief Operating Officer Sheryl Sandberg. Mike Schroepfer, former Chief Technology Officer of META. Instagram co-founder Kevin Systrom; executive of rival social media platforms.
What’s going on in court today?
The FTC and Meta had an opening discussion on Monday, with witness testimony expected to begin in the afternoon.
Lead FTC lawyer Matheson said in his opening statement that Meta is struggling to compete with the rapidly growing Whatsapp and Instagram platforms, and when purchasing them, the tech giant will “eliminate the immediate threat” to the market.
Meta said the company “nothing was bad” by getting Instagram and WhatsApp. Meta Attorney Mark Hansen said in his opening statement that the two apps have grown significantly under the ownership of high-tech companies and there is no evidence to prove that Meta is monopoly.
If Meta has exclusive power, Hansen said he will control pricing in the social media space. However, Meta’s services are free, he pointed out. “How can the FTC maintain this exclusive case if (META) never charged users for a cent,” Hansen said.
After the opening statement, Zuckerberg was the first person to be called to the stands to testify. His
The testimony focused primarily on Facebook’s efforts to build a rival photography app that could compete with Instagram before finally deciding to buy the company in 2012.
Zuckerberg admitted that Facebook struggled with mobile users in the early 2010s. “Our entire company was built up to that point,” the desktop said.
Referring to the email communication sent by the Meta Executive, the FTC noted that Zuckerberg was paying attention to the progress of its competitors’ Instagram. At the time, Facebook was working on launching a new photography app.
According to the FTC, Zuckerberg sent an email in February 2011 saying, “Instagram appears to be growing rapidly.”
In 2012, Zuckerberg sent another email explaining the rationale for purchasing Instagram, according to the FTC, explaining that he had purchased Instagram. At that point, Facebook “doesn’t even understand how late we are,” he said, “we’re worried that it’ll take too long to catch up.”
Zuckerberg is scheduled to return to court on Tuesday morning to continue his testimony.
What is at risk?
The showdown is the most important legal challenge that has been brought to Meta in the approximately 20-year history of the company. If the FTC is successful, Meta could be forced to sell Instagram and WhatsApp. Instagram, which Meta has owned for over a decade, accounts for half of the company’s overall ad revenue.
“Instagram has also picked up Facebook’s Slack in terms of users, especially among young people,” Emarketer analyst Jasmine Enberg told The Associated Press.
“The trial is also because Meta is trying to revive OG Facebook to appeal to Gen Z and younger users when it comes to social media. The use of social media is much more fragmented than in 2012, when Facebook acquired Instagram.
Headquartered in Menlo Park, California, Meta has earned more than $164 billion in revenue in 2024. Facebook and Instagram are two of the world’s most profitable social media platforms.
In a statement issued on Sunday, April 13, Mehta said “there is no high interest in this trial for US consumers and businesses.”
What does Meta say?
The social media company called the FTC case “weak” and “ignoring reality,” adding that it faces tough competition from Tiktok and YouTube. Both platforms outperform Facebook and Instagram in terms of how much time users spend on each.
“Ultimately, these unfair lawsuits make a company think twice before investing in innovation, and know that if that innovation leads to success, it could be punished,” Mehta’s statement reads. “Additionally, this weak case costs taxpayers millions of dollars.”
“The FTC’s lawsuit against Meta is against reality,” a Meta spokesperson told CBS Money Watch. “The evidence at trial shows you know every 17 years of age around the world. Instagram, Facebook and WhatsApp compete with China-owned Tiktok, YouTube, X, Imessage and more.”
“Regulators should help American innovation rather than disbanding great American companies and benefiting China further on serious issues like AI,” the spokesman added.
The FTC did not reply to requests for comment.
When did this case begin?
Metacase’s history goes back several years. The FTC initially filed a lawsuit in 2020 during the first term of President Trump’s office.
June 2021, US District Judge James Boasburg Rejected The antitrust law filed by the FTC alleges that the lawsuit is “legally inadequate” and does not provide sufficient evidence to prove that Facebook is monopolistic.
However, the Washington Post said that after the FTC introduced more evidence in the revised complaint, federal judges later cleared the path to litigation.
I contributed to this report.
