Meta defeated a federal antitrust challenge as U.S. District Judge James Boasberg ruled the company does not hold a monopoly in social media. The decision allows Meta to retain ownership of Instagram and WhatsApp, acquisitions the Federal Trade Commission (FTC) sought to unwind.

As Reuters reports, the ruling represents the first decisive win for Big Tech companies against the antitrust crackdown that began during President Donald Trump’s first term. 

The FTC sued Meta in 2020, alleging the company held a monopoly on U.S. platforms used to share content with friends and family. The agency did not challenge the acquisitions when Meta, then called Facebook, purchased Instagram in 2012 and WhatsApp in 2014.

The FTC argued Meta’s main competitors include Snap’s Snapchat and MeWe, a privacy-focused social media app launched in 2016. The agency distinguishes these platforms from services where users broadcast content to strangers based on shared interests, such as X, TikTok, YouTube, and Reddit.

During an April trial, the FTC presented a 2008 email from CEO Mark Zuckerberg stating “it is better to buy than compete” as evidence of Meta’s acquisition strategy.

TikTok and YouTube as Competitive Forces

Meta argued that the FTC ignored competitive pressure from ByteDance’s TikTok, Google’s YouTube, and Apple’s messaging app. The company defended its acquisition strategy as valid business practice.

Judge Boasberg agreed with Meta’s position, noting that social media has shifted since Facebook’s early days of personal status updates. He cited trial evidence showing users substitute YouTube and TikTok for Meta’s apps during outages.

The judge noted TikTok forced Meta to spend $4 billion on Reels, its short video-sharing feature, demonstrating competitive pressure. Boasberg ruled the FTC incorrectly excluded YouTube and TikTok from the relevant market. 

“Even if YouTube is out, including TikTok alone defeats the FTC’s case,” the judge said in a statement.

The FTC expressed disappointment and is reviewing its options for appeal.

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