Zuckerberg's Meta in dire straits thanks to Instagram and WhatsApp acquisitions

Another day, another Big Tech court drama, as Meta (the parent company of Facebook) is heading to trial this week in Washington.

The accusations are serious – that Meta has built an illegal monopoly in the social media space through its acquisitions of Instagram and WhatsApp some years ago. The case is brought by the US Federal Trade Commission (FTC) and centers on Meta's strategy to purchase potential rivals in order to maintain dominance in the market for social platforms. You know, that's a big no-no in the business world.

The FTC originally filed the case in 2020 (at the end of Trump's first term). Not, it's seeking to have Meta divest some of its most important assets, including the super popular Instagram and WhatsApp platforms. According to the agency, Meta's acquisition strategy was designed to neutralize emerging competitors before they could threaten Facebook's position.

In contrast, Meta argues that these acquisitions benefited consumers and that the market has since evolved, with strong competition from services like TikTok, YouTube, and Apple's messaging tools.

Meta's Chief Legal Officer has criticized the lawsuit as being both flawed and counterproductive, claiming it discourages investment in American technology companies. She also pointed out what she sees as a contradiction in government policy, noting that while the FTC targets Meta, other arms of the administration are focused on "saving" Chinese-owned TikTok from the previous administration's bill.



The trial could have serious implications for Meta's future, especially since Instagram is estimated to generate more than half of Meta's ad revenue in the United States. Industry research shows that Instagram brings in more revenue per user than any other platform. WhatsApp, although not as significant in terms of revenue so far, has become Meta's largest app by daily users and is seen as a key growth area, especially through monetized messaging tools.

Meta CEO Mark Zuckerberg is expected to testify, including on internal discussions about acquiring Instagram to neutralize competition and concerns over WhatsApp's future potential. Meanwhile, the FTC will argue that platforms like Snapchat and MeWe do not provide meaningful competition in the same space as Facebook and Instagram.

A win for the FTC could lead to further proceedings to determine whether breaking up Meta would restore competitive conditions in the industry.