Meta CEO Mark Zuckerberg took the stand this week in a landmark antitrust trial in Washington, D.C., fiercely defending his company’s high-profile acquisitions of Instagram and WhatsApp against allegations that Meta sought to stifle competition and cement its dominance in the social media landscape.
A Historic Legal Showdown
The Federal Trade Commission (FTC) is pressing for Meta to divest Instagram and WhatsApp, arguing that the company’s multi-billion-dollar purchases were calculated moves to eliminate emerging threats and maintain its monopoly. The trial, which could stretch over two months, marks one of the most consequential antitrust challenges faced by a U.S. tech giant in recent years, with the potential to force Meta to break apart its business empire—a move that could upend the digital advertising market and reshape the social media industry.
Zuckerberg’s Defense: Strategy, Not Suppression
Testifying in a dark suit and light blue tie, Zuckerberg maintained a calm, measured demeanor as he fielded pointed questions from FTC lawyers. He acknowledged that Instagram’s rapid growth in 2012 motivated Meta’s $1 billion acquisition, describing the app’s camera and filters as “impressive” and its user appeal as undeniable. “I thought it was wiser to purchase them,” he said, noting that Meta had considered building its own photo-sharing service but recognized Instagram’s lead in the space.
Zuckerberg also addressed internal communications from the time, including a 2012 email to then-CFO David Ebersman suggesting that acquiring Instagram and other startups could “buy time” for Facebook to catch up. He insisted, however, that Meta’s investments added significant value to Instagram, helping it scale and innovate.
Antitrust Scrutiny and the Instagram Spin-Off Memo
A key revelation during the proceedings was a 2018 memo in which Zuckerberg contemplated spinning off Instagram as antitrust scrutiny of Big Tech intensified. The memo, disclosed in court, reflected his awareness that mounting regulatory pressure could force Meta to separate from Instagram and WhatsApp within five to ten years. “If we consider the step of Instagram out as a separate company,” Zuckerberg wrote, signaling the seriousness with which Meta regarded the regulatory climate.
FTC’s Argument: Monopoly Power and Consumer Harm
The FTC’s case hinges on the assertion that Meta’s acquisitions were not about innovation, but about neutralizing competition. FTC attorney Daniel Matheson characterized Meta’s strategy as “erecting a moat” to protect its interests, citing internal emails and market data to argue that Instagram and WhatsApp were existential threats to Facebook at the time of purchase.
The government contends that Meta’s control of Instagram and WhatsApp has led to reduced consumer choice and stifled innovation, and that only a forced divestiture can restore competition. If successful, the FTC’s suit could force Meta to split off Instagram and WhatsApp as independent entities—an outcome that would deal a major blow to Meta’s advertising business, as Instagram alone now accounts for roughly half of the company’s U.S. ad revenue.
Meta’s Rebuttal: Competition Is Fierce
Meta’s legal team countered that the company faces robust competition from platforms like TikTok, YouTube, and Snap, and that the acquisitions were approved by regulators over a decade ago. “This lawsuit, in summary, is misguided,” said Meta attorney Mark Hansen, insisting that consumers have benefited from Meta’s stewardship of Instagram and WhatsApp.
What’s Next?
The trial is expected to feature testimony from other key figures, including former Meta COO Sheryl Sandberg and Instagram head Adam Mosseri. The outcome could set a precedent for how U.S. regulators approach Big Tech and mergers in the digital age.
As the courtroom drama unfolds, the stakes for Meta—and the broader tech industry—could not be higher. The case will test the government’s ability to rein in Silicon Valley’s giants and may redefine the boundaries of competition in the social media era.