Mark Zuckerberg defends Meta in social media monopoly trial

Mark Zuckerberg, the CEO of Meta, recently took the stand in a significant antitrust trial aimed at defending his company against claims that it operates a monopoly in the social media landscape. This trial is part of a case initiated by the Federal Trade Commission (FTC) back in 2020, during the final days of the Trump administration. The FTC argues that Meta has unfairly dominated the social media market, particularly through its acquisitions of Instagram in 2012 and WhatsApp in 2014. The agency is seeking to break up Meta by requiring the company to divest either Instagram or WhatsApp. In response, Meta asserts that there is ample competition in the social media space, citing platforms like TikTok, X, and YouTube as rivals. Dressed in a dark suit and a light blue tie, Mr. Zuckerberg was the first witness to testify in the trial, which is expected to last for two months. The FTC highlighted a 2011 email from Mr. Zuckerberg in which he noted that Instagram was growing rapidly. The following year, he sent another email expressing concern that Meta was lagging behind in the competition and worried about the time it would take to catch up. On the witness stand, Mr. Zuckerberg defended his earlier statements, describing the emails as 'relatively early' discussions about the potential acquisition of Instagram. He emphasized that Meta has made significant improvements to Instagram over the years. The trial could extend until July, and Mr. Zuckerberg also stated that his interest in acquiring Instagram was primarily due to its camera technology, rather than its social networking capabilities. He is expected to continue his testimony on Tuesday. The FTC contends that Meta overpaid for Instagram, which cost $1 billion, and WhatsApp, which cost $19 billion, viewing these acquisitions as defensive moves. FTC lawyer Daniel Matheson argued in his opening statement that Meta chose to buy out its competitors instead of competing with them directly. In contrast, Meta's legal team argued that the FTC's lawsuit is misguided, as the agency initially reviewed and approved both acquisitions. Meta's attorney, Mark Hansen, asserted that the company acquired Instagram and WhatsApp to enhance and grow them alongside Facebook. The FTC lawyer referenced a 2012 memo from Mr. Zuckerberg discussing the need to 'neutralise' Instagram, which he described as a 'smoking gun' in the case against Meta. However, Meta countered that these acquisitions have improved the consumer experience, with their lead litigator stating that acquisitions aimed at growth have never been deemed unlawful. Last year, Meta reported having 3. 27 billion daily active users across its various platforms, with Instagram projected to account for over half of Meta's advertising revenue in the United States by 2025, according to research from Emarketer. Additionally, Meta has been making efforts to strengthen its ties with Trump since his election, contributing $1 million to his inaugural fund and adding former Trump adviser Dina Powell McCormick and UFC president Dana White to its board of directors this year. The company also announced in January that it would be rolling back content moderation policies that some Republicans claimed amounted to censorship. Furthermore, Meta agreed to pay Trump $25 million to settle a lawsuit regarding the suspension of his accounts following the Capitol riot in 2021. In recent weeks, Mr. Zuckerberg has visited the White House and reportedly lobbied Trump in person to persuade the FTC to drop the case. When asked by the BBC to confirm this report, Meta did not provide a direct answer but stated, 'The FTC's lawsuits against Meta defy reality. ' The FTC's case against Meta is unfolding alongside another major antitrust case involving Google, where the Department of Justice won the first phase last summer, with Judge Amit Mehta ruling that Google holds a monopoly in online search, boasting a market share of around 90%. Last month, government attorneys reiterated a demand made during the Biden administration for a court to break up Google's search monopoly. According to Laura Phillips-Sawyer, an associate professor of business law at the University of Georgia, the FTC's case against Meta may be more challenging to prove. She stated, 'I think they have a real uphill battle. ' Compared to online search, there is more competition in the personal network services sector where Meta operates, making it a more complex case for the FTC. Additionally, Amazon and Apple are also facing antitrust lawsuits from U. S. regulators.