Mumbai: In a major setback for US regulators, a federal judge on Tuesday dismissed the Federal Trade Commission’s attempt to force Meta Platforms Inc. to divest Instagram and WhatsApp, ruling that the agency failed to show the company holds an illegal monopoly in social networking.
US District Judge James Boasberg, issuing an 89-page ruling, said the FTC did not prove that Meta dominates the market to the degree required under antitrust law—citing significant competition from TikTok, YouTube, X (formerly Twitter) and a growing field of social platforms. The decision hands Meta a pivotal victory in one of the most consequential tech antitrust cases of the decade.
FTC’s “Buy or Bury” Case Falls Short
The lawsuit, first filed in 2020, accused Meta of systematically neutralising competitive threats through a “buy or bury” strategy—pointing to its $1 billion acquisition of Instagram in 2012 and $19 billion purchase of WhatsApp in 2014. Regulators argued that Meta sought to eliminate emerging rivals rather than foster innovation.
Although both transactions were reviewed and cleared by the FTC at the time, the agency reopened the challenge amid heightened scrutiny of Big Tech’s market power.
Inside the Trial
The non-jury trial, held between April and May 2025, featured internal Meta emails and executive testimony, including a 2008 message from CEO Mark Zuckerberg that read, “it is better to buy than compete.”
But Boasberg ultimately accepted Meta’s argument that the deals strengthened the then-nascent apps and that the industry has since shifted from personal sharing to entertainment and video-driven models—fundamentally altering competitive dynamics.
A Blow to Washington’s Antitrust Push
The ruling is the first major win for Meta in a growing series of regulatory battles and represents a broader challenge to Washington’s effort to undo long-closed mergers in the technology sector. It comes as the Justice Department has scored recent victories against Google in cases involving search and online advertising monopolies, while high-profile suits against Amazon and Apple remain in progress.
The FTC’s options now include appealing the decision or narrowing its claims—choices that will shape the future of antitrust enforcement in the social media era.
