Meta Faces Critical FTC Inquiry Over Instagram and WhatsApp Acquisitions
CEO Mark Zuckerberg to be scrutinized in unprecedented FTC trial as regulatory pressure mounts on tech giants.
Meta Platforms Inc., the parent company of Facebook, is currently under a significant investigation by the U.S. Federal Trade Commission (FTC), which is preparing to question CEO Mark Zuckerberg in a trial aimed at potentially unwinding the company's acquisitions of Instagram and WhatsApp.
This development reflects increasing scrutiny on major technology companies.
Zuckerberg is scheduled to testify in the trial beginning in April, where he will face an extensive questioning period that could last up to seven hours.
This duration surpasses that of other high-profile executives, with Kevin Systrom, co-founder of Instagram, set to testify for three hours, along with former Facebook COO Sheryl Sandberg, current Instagram head Adam Mosseri, and current Meta CEO Javier Olivan.
The FTC alleges that Meta is unlawfully maintaining control over the social media market, asserting that the company acquired Instagram for $1 billion in 2012 and WhatsApp for $19 billion in 2014 with the intent to eliminate competition.
The regulatory body is seeking to dismantle Meta by mandating the separation of these two applications from the parent company.
In an official statement, a Meta spokesperson reinforced that the acquisitions of Instagram and WhatsApp have been beneficial for competition and consumers, expressing confidence that the trial will demonstrate this point.
Legal challenges against the FTC are complex, stemming from a case initiated in 2020 during the Trump administration.
A recent ruling by U.S. District Judge James Boasberg rejected some allegations brought forth by the FTC but permitted the core claims regarding Instagram and WhatsApp to proceed.
Nonetheless, the judge acknowledged that the commission faces significant challenges in substantiating its case, remarking that the FTC must address difficult questions regarding the validity of its arguments under trial conditions.
Should the FTC prevail in its case, Zuckerberg may be compelled to undertake drastic measures such as dismantling Meta, which could represent one of the most significant shifts in the landscape of major tech companies.
The coming weeks are pivotal in determining the future of Zuckerberg’s digital empire.
This development reflects increasing scrutiny on major technology companies.
Zuckerberg is scheduled to testify in the trial beginning in April, where he will face an extensive questioning period that could last up to seven hours.
This duration surpasses that of other high-profile executives, with Kevin Systrom, co-founder of Instagram, set to testify for three hours, along with former Facebook COO Sheryl Sandberg, current Instagram head Adam Mosseri, and current Meta CEO Javier Olivan.
The FTC alleges that Meta is unlawfully maintaining control over the social media market, asserting that the company acquired Instagram for $1 billion in 2012 and WhatsApp for $19 billion in 2014 with the intent to eliminate competition.
The regulatory body is seeking to dismantle Meta by mandating the separation of these two applications from the parent company.
In an official statement, a Meta spokesperson reinforced that the acquisitions of Instagram and WhatsApp have been beneficial for competition and consumers, expressing confidence that the trial will demonstrate this point.
Legal challenges against the FTC are complex, stemming from a case initiated in 2020 during the Trump administration.
A recent ruling by U.S. District Judge James Boasberg rejected some allegations brought forth by the FTC but permitted the core claims regarding Instagram and WhatsApp to proceed.
Nonetheless, the judge acknowledged that the commission faces significant challenges in substantiating its case, remarking that the FTC must address difficult questions regarding the validity of its arguments under trial conditions.
Should the FTC prevail in its case, Zuckerberg may be compelled to undertake drastic measures such as dismantling Meta, which could represent one of the most significant shifts in the landscape of major tech companies.
The coming weeks are pivotal in determining the future of Zuckerberg’s digital empire.
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