Meta Platforms Inc. is once again in the legal spotlight, facing a high-stakes antitrust trial initiated by the U.S. Federal Trade Commission (FTC). The outcome could reshape the future of the $1.4 trillion tech giant, as the FTC seeks to break up Meta’s ownership of Instagram and WhatsApp—acquisitions it alleges were part of a calculated move to eliminate competition.
Behind-the-Scenes Lobbying and Rejected Offers
According to a report by The Wall Street Journal, Meta CEO Mark Zuckerberg made multiple attempts earlier this year to settle the case outside of court. In March, Zuckerberg reportedly offered the FTC $450 million in a bid to resolve the matter. As the trial approached, he is said to have increased the offer to $1 billion. However, both offers were turned down by FTC Chairman Andrew Ferguson, who was reportedly unwilling to settle for anything less than $18 billion and a formal consent decree.
The report further claims that Zuckerberg engaged in intense lobbying to avoid trial, even seeking support from former U.S. President Donald Trump in an attempt to halt the FTC’s lawsuit. Meta is said to have contributed $1 million to Trump’s inauguration and resolved a separate $25 million lawsuit, signaling efforts to strengthen ties with the former administration.
Despite these efforts, the FTC proceeded with its legal challenge. The trial officially began this Monday, with Zuckerberg called to the witness stand—reportedly against his initial wishes.
Core of the FTC’s Case: Market Dominance Through Acquisitions
The FTC argues that Meta’s acquisition of Instagram in 2012 and WhatsApp in 2014 was not just strategic but anti-competitive. It contends that by purchasing its most significant emerging rivals, Meta effectively neutralized threats to its dominance in what the agency terms the “personal social networking” market—apps designed to connect users with close friends and family.
Meta’s defense rests on its claim that the digital landscape is far broader and more competitive than the FTC suggests. The company points to competition from platforms like TikTok, Snapchat, YouTube, and even Apple’s iMessage. During his court appearance, Zuckerberg stated that the acquisitions were intended to foster innovation and improve user experience—not to stifle rivals.
The Emails at the Heart of the Lawsuit
A crucial element of the FTC’s case involves internal emails dating back to 2012. In one, Zuckerberg appeared to suggest that acquiring Instagram could help “neutralize a competitor.” Another message expressed concern that Facebook’s own photo app, Facebook Camera, was falling behind Instagram in popularity.
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While Zuckerberg admitted the authenticity of both communications, he argued that they reflected early-stage thinking and not Meta’s overarching strategy. He emphasized that the company has since evolved, now focusing more on content discovery and interest-based algorithms—though connecting people remains a central goal.
What’s at Stake
If the FTC prevails, the court could order Meta to divest Instagram and WhatsApp—two key pillars of its business. Instagram alone is expected to account for over half of Meta’s U.S. advertising revenue by 2025. A forced separation would not only hit Meta financially but also dramatically alter the digital advertising and social networking ecosystems.
The trial is expected to span eight weeks, featuring testimony from several prominent figures, including former Meta COO Sheryl Sandberg and Instagram co-founder Kevin Systrom. The case is being closely watched as a potential landmark in U.S. antitrust enforcement against Big Tech.
As Meta battles to defend its structure and vision, the trial’s outcome could set a precedent for how regulators tackle platform dominance in the modern digital economy.