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Meta faces April trial in FTC case seeking to unwind Instagram merger
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Meta faces April trial in FTC case seeking to unwind Instagram merger
Nov 25, 2024 12:29 PM

NEW YORK, Nov 25 (Reuters) - Facebook owner Meta

Platforms ( META ) will face trial in April over the U.S.

Federal Trade Commission's allegations that the social media

platform bought Instagram and WhatsApp to crush emerging

competition, a judge in Washington said on Monday.

The FTC sued in 2020, during the Trump administration,

alleging the company acted illegally to maintain a monopoly on

personal social networks. Meta, then known as Facebook, overpaid

for Instagram in 2012 and WhatsApp in 2014 to eliminate nascent

threats instead of competing on its own in the mobile ecosystem,

the FTC claims.

Judge James Boasberg set trial in the case for April 14.

Boasberg earlier this month rejected Meta's argument that

the case should be dismissed as it depends on an overly narrow

view of social media markets. The lawsuit does not account for

competition from ByteDance's TikTok, Alphabet's

YouTube, X, and Microsoft's ( MSFT ) LinkedIn, Meta had argued.

Boasberg said that while the case should go forward to

trial, "time and technological change pose serious challenges"

to the FTC's market definition.

"The Commission faces hard questions about whether its

claims can hold up in the crucible of trial. Indeed, its

positions at times strain this country's creaking antitrust

precedents to their limits," the judge said in the Nov. 13

ruling.

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