The Federal Trade Commission’s antitrust case against Meta was dismissed in its entirety on February 18th by Judge James Boasberg of the District Court for the District of Columbia. Just to recap for those who haven’t been following every bump and hurdle of this five-year case, the FTC first charged Meta with having an illegal monopoly and maintaining that monopoly via anti-competitive behavior in December of 2020 (I wrote about the lawsuit for the Columbia Journalism Review, where I was the chief digital writer at the time). The case was rejected the following year by the very same Judge Boasberg because he said the FTC had failed to prove that Meta had a monopoly over a distinct market (I wrote about that for CJR too). However, the judge gave the FTC a chance to re-file the case provided it came up with more evidence of a monopoly, so it tried to do so – and on Tuesday, the judge threw that case out just like he did the previous one, saying the evidence provided failed to prove the FTC’s case. From Politico:
Meta’s acquisition of Instagram and WhatsApp did not create an illegal social media monopoly, a federal judge ruled Tuesday, a decision that solidifies the future of the $1.5 trillion tech giant. Judge James Boasberg in Washington rejected the Federal Trade Commission’s claim that Facebook’s parent company monopolized the “personal social networking” market for connecting with friends and family. “As it has forecast in prior Opinions over the years, the FTC has an uphill battle to establish the contours of any separate PSN market and Defendant’s monopoly therein,” Boasberg wrote. “The Court ultimately concludes that the agency has not carried its burden: Meta holds no monopoly in the relevant market.”
One of the key points in the FTC case – which was originally joined by a similar lawsuit filed on behalf of 46 states, although the latter was also thrown out by Boasberg in 2021 – was that because of its allegedly monopolistic position in the personal social-networking market, the company should not have been allowed to acquire either Instagram (which it bought in 2012 for $1 billion) or WhatsApp, which it acquired in 2014 for $22 billion. According to the FTC, Instagram cemented Meta’s dominance over photo-related social networking, and WhatsApp entrenched its position in person-to-person text messaging – especially in non-US countries, since WhatsApp is free and when it was acquired many countries charged users for sending text messages. Meta, not surprisingly, pointed out that both acquisitions were approved by the Federal Trade Commission at the time they were done, but the FTC was unmoved. Here’s how the New York Times summarized the case when it was first launched in 2020:
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