The Federal Trade Commission (FTC) is set to begin a trial on Monday, April 14, challenging Meta over its past acquisitions of Instagram and WhatsApp. The acquisitions, originally approved more than a decade ago, are under scrutiny in an antitrust lawsuit. Meta contends that the FTC's claims are not grounded in the realities of the market.
Meta highlights the improvements made to Instagram and WhatsApp since their purchases, attributing these enhancements to significant investments in both applications. According to Meta, these platforms now boast over two billion monthly active users each, offering features like in-app messaging, live streaming, and end-to-end encrypted communication services.
Meta argues that for the FTC's lawsuit to succeed, it must prove that Meta holds a dominant market share and that its acquisitions have harmed competition and consumers. Meta claims this assertion is flawed, pointing out that platforms like TikTok and YouTube command significant user engagement, countering the FTC's market share argument.
Meta also emphasizes the growing competitive environment, citing an increase in competition since the FTC's complaint was filed. The company views the lawsuit as a potential threat to U.S. business and innovation, criticizing the case as an attempt to rewrite history and stating that American businesses operate under fear of retroactive penalties for successful innovation.
Furthermore, Meta argues that the FTC is undermining U.S. companies by targeting Meta while the Administration is focused on managing Chinese-owned TikTok. Meta insists that such actions could hinder much-needed investment in areas like artificial intelligence, crucial for competing with China.
The lawsuit does not address issues of censorship, with Meta asserting confidence in its position as it prepares for the upcoming court proceedings.