By Julian Castillo
Nov 15, 2024, 8:52 PM EST
The United States Federal Trade Commission (FTC) has advanced a antitrust case against Metapreviously known as Facebook, alleging that the acquisitions of Instagram in 2012 and WhatsApp in 2014 constitute monopolistic strategies.
This case, originally filed in 2020 under the Donald Trump administration, seeks to dismantle what the FTC calls the “monolithic power” of Meta in the social media market. The main objective is to reduce the influence of the company led by Mark Zuckerberg, which is accused of eliminating potential competitors instead of innovating or competing directly.
Demand details
The FTC argues that the Instagram and WhatsApp purchases were not simply strategic investmentsbut moves designed to nullify competitive threats. According to the regulatory body, this has limited innovation, restricted options for consumers and consolidated a monopoly that is harmful to the technology market.
The lawsuit states that Meta uses practices such as restricting developer access to its platforms to maintain its control and avoid direct competition with its main services.
Meta maintains that the FTC’s accusation lacks solid foundations by ignoring growing competition from platforms like TikTok, YouTube and X (formerly Twitter). In addition, he emphasizes that the acquisitions were made more than a decade ago and were approved by the authorities at the time. In this context, the company defends that the social media market is dynamic and that its position is not a monopoly, but the result of legitimate and legal strategies.
Implications of the case
This trial is one of the most notable in the antitrust fight in the United Stateswhere large technology companies such as Alphabet (Google), Amazon and Apple also face similar lawsuits. If the FTC manages to prove its allegations, Meta could face the possibility of selling Instagram and WhatsApp, setting a significant precedent for the regulation of technology giants. Additionally, this case could influence how tech companies plan future acquisitions, prompting stricter oversight by regulators.
This legal showdown between the FTC and Meta reflects a change in government attitudes toward big tech companies.seeking to limit its power in favor of competition and consumer rights. Although the case does not yet have a set trial date, its resolution could reshape the global technology landscape, setting new standards for relationships between corporations and regulators.
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