Federal judge rules Meta not a social networking monopoly News
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Federal judge rules Meta not a social networking monopoly

A federal judge ruled Tuesday that the social technology company Meta does not hold a monopoly in the “personal social networking” (PSN) market, in the antitrust case Federal Trade Commission v. Meta Platforms, Inc. Meta will therefore not have to divest its acquisitions of Instagram and WhatsApp.

Chief Judge James E. Boasberg of the US District Court for the District of Columbia stated in a memorandum opinion: “While it once might have made sense to partition apps into separate markets of social networking and social media, the wall has since broken down.” He said that the Federal Trade Commission (FTC) has “struggled to fix the boundaries of Meta’s product market” and consequently failed to establish that Meta has a monopoly. He highlighted the significant changes in the market since the case was brought five years ago, with previous court opinions not mentioning TikTok which today “holds center stage as Meta’s fiercest rival.”

The suit was brought by the FTC against Meta in December 2020. The FTC argued that social networking constitutes its own market, and that Meta’s purchase of Instagram and WhatsApp exemplifies anticompetitive behavior in violation of Section 2 of the Sherman Act.

Under the act, it is a felony to monopolize trade, an act comprised of “holding monopoly power” and “maintaining it through means other than competition on the merits.” FTC defined Meta’s product market as “PSN apps” used for communication with family and friends, not entertainment for which TikTok and YouTube are used. Meta however claimed that it operates within “the broader field of social media” and that TikTok and YouTube function as “substitutes for Facebook and Instagram.” The court found that TikTok alone is sufficient to bring Meta’s market share below that of a monopoly.

Director of public affairs at the FTC, Joe Simonson, said to the BBC that the agency was “deeply disappointed in this decision” and had not yet decided whether it would appeal. Meta told the BBC that its products are “beneficial for people and businesses and exemplify American innovation and economic growth.”

Numerous antitrust lawsuits are taking place against major US tech companies such as Apple and Google as well as Meta.

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