Meta wins key antitrust case, judge finds no social media monopoly.

A U.S. federal judge has dismissed the Federal Trade Commission’s (FTC) antitrust lawsuit against Meta, ruling that the Facebook parent company has not constituted an illegal monopoly in the social media sector.

On Tuesday, U.S. District Court Judge James Boasberg of Washington D.C. stated in his 89-page judgment that the Federal Trade Commission failed to prove that Meta has maintained an illegal monopoly through its acquisition of Instagram in 2012 and WhatsApp in 2014.

Following the verdict, Meta’s stock price rose, narrowing previous losses. A Meta spokesperson stated that this outcome “recognizes that Meta faces fierce competition.”

An FTC spokesperson expressed that they were “deeply disappointed” by the decision, saying, “Judge Boasberg has always ruled against us, and he currently faces impeachment charges,” and added that all options are being reviewed.

The market landscape has fundamentally changed

Boasberg emphasized in his judgment that, the FTC must prove that Meta currently holds monopoly power, rather than having had such power only in the past.

The judge pointed out that the social media market has undergone major changes in recent years.

User trends have shifted markedly toward video content, with YouTube and other short video apps possessing large user bases and strong network effects in this field. Boasberg wrote:

The most used parts of Meta’s apps are now indistinguishable from YouTube’s products.

Evidence cited in the judgment shows that consumers are spending “a large amount of time” on these platforms rather than Meta’s apps, forcing Meta “to invest heavily to keep up with competition.”

The judge also cited documents and testimony from “industry insiders,” showing that companies such as YouTube and short video apps regard Meta as a serious competitive threat.

FTC unable to provide clear evidence

The history of this case dates back to the Trump administration, when the FTC sued Meta at the end of 2020.

Boasberg had previously dismissed the lawsuit the following year, stating that the FTC had not provided sufficient factual support for its claims.

During the Biden administration, under then-chair Lina Khan, the FTC filed a new, more detailed complaint. In 2022, Boasberg ruled that the case could proceed, saying the FTC provided more details than before.

In a six-week trial that began in April this year, FTC lawyers frequently struggled to show a clear distinction between the usage of Facebook and Instagram versus services like YouTube and short video platforms.

The FTC argued that Meta’s products focus on connecting friends and family and do not compete with entertainment apps such as TikTok and YouTube, thus maintaining monopoly status to this day.

Boasberg commented:

Although there may be disputes over every empirical demonstration that Meta presented, they all tell a consistent story: People see short video apps and YouTube as alternatives to Facebook and Instagram, with the degree of competitive overlap being economically significant.

The FTC previously demanded that Meta divest Instagram and WhatsApp and sought a $30 billion settlement before the case went to trial. Reportedly, in April this year, Meta CEO Mark Zuckerberg proposed a $450 million settlement, believing President Trump would support ending the legal battle.

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