Federal Judge Rules Meta Is Not an Illegal Monopoly in FTC Antitrust Case

Meta scored a significant win on Tuesday when a federal judge ruled the company is not an illegal monopoly in the social networking market. The decision shuts down the Federal Trade Commission’s years-long attempt to force Meta to divest Instagram and WhatsApp, arguing those acquisitions were anticompetitive.

The FTC filed the lawsuit in 2020, claiming Meta violated antitrust law by buying up emerging rivals to avoid competition. But after a seven-week trial featuring testimony from Meta CEO Mark Zuckerberg and other major tech figures, Judge James Boasberg ruled in Meta’s favor. In his opinion, Boasberg said rival platforms like TikTok and YouTube clearly prevent Meta from controlling the social network market.

“Meta holds no monopoly in the relevant market,” he wrote, noting that the social media landscape has shifted significantly since the case began, particularly with the rise of AI-generated content.

The judge also pointed to declining user engagement with Facebook, Meta’s original platform, as evidence that the company’s dominance has weakened.

The FTC expressed frustration with the ruling. Director of Public Affairs Joe Simonson said the agency is reviewing all options, adding that it was “deeply disappointed” in the decision.

A breakup would have severely impacted Meta’s global business. Instagram drives a major share of the company’s advertising revenue, while WhatsApp is essential to its international communication and business strategy. Meta currently serves more than 3.3 billion daily users across its family of apps.

Meta executives celebrated the ruling, calling it a victory for innovation and competition. “The Court’s decision today recognizes that Meta faces fierce competition,” said Meta Chief Legal Officer Jennifer Newstead. “Our products are beneficial for people and businesses and exemplify American innovation and economic growth.”

The decision comes as Big Tech faces mounting pressure from regulators. Google was recently ruled a monopoly in two separate cases involving search and digital advertising. Apple and Amazon are also locked in antitrust battles.

Meta acquired Instagram for $1 billion in 2012 and WhatsApp for $19 billion in 2014 — transactions the FTC approved at the time. During the trial, regulators pointed to internal emails suggesting Zuckerberg viewed the apps as threats before purchasing them. Meta argued the government cannot retroactively punish acquisitions it once allowed.

Judge Boasberg concluded Meta holds only a modest share of time spent on social media platforms, a market that includes TikTok, YouTube, Snapchat, MeWe and others. Even excluding YouTube from the market definition, he said Meta would still not qualify as a monopoly — and largely credited TikTok’s explosive growth as reshaping the social media landscape.

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