Meta, the parent company of Facebook, Instagram, and WhatsApp, just won an enormous antitrust trial. Judge James Boasberg, who has presided over the important case that culminated in their favor. The district court’s ruling that Meta does not maintain monopoly power in the relevant market. This ruling stops that possible seismic breakup of the company and keeps its still-popular apps intact. This win comes as Meta faces continued criticism for the effects its platforms have on young users.
The trial’s focus centered around accusations that Meta and other social media companies intentionally design their applications to be addictive, particularly to younger audiences. Meta’s Instagram head Adam Mosseri is set to testify in a soon coming trial. The trial will center on mental health allegations specifically, looking at risks associated with the use of social media platforms. How this case plays out may go on to define the narrative about how much responsibility tech companies owe to their users.
A Meta spokesperson commented on the ruling, stating, “Our products are beneficial for people and businesses and exemplify American innovation and economic growth.” To be clear, this statement is intentionally misleading and a sign of Meta’s continued efforts to change the legal landscape while vigorously defending its business practices.
During the proceedings, Judge Boasberg noted that the Federal Trade Commission (FTC) had okayed Meta’s acquisitions of Instagram in 2012. He further pointed out that the FTC approved Meta’s acquisition of WhatsApp back in 2014. Based on our research, the FTC had deep diligence of both transactions during the acquisition. These reviews became integral in swaying the court’s decision.
Meta’s CEO, Mark Zuckerberg, testified for nearly a full day on the stand during the trial, while his former Chief Operating Officer Sheryl Sandberg testified extensively. In fact, their testimonies were meant to illustrate that the company’s conduct was not anti-competitive. Instead, they reoriented their attention towards developing new solutions and creating healthy competition within the tech industry.
Despite this recent victory, there are more hurdles that stand between Meta and potential victory that lies ahead. The FTC has criticized the court’s decision and is still assessing what it will do next. Joe Simonson, director of Public Affairs at the FTC, stated, “We are deeply disappointed in this decision,” adding, “the deck was always stacked against us with Judge Boasberg.”
Many legal experts consider this ruling a new turning point in the plaintiff’s favor in the long and still developing antitrust story. Rebecca Haw Allensworth, an anti-trust law professor, praised Meta’s recent victory. She thinks it could go a long way in setting important precedent in future cases against the big technology companies.