Meta Faces Landmark FTC Trial as Instagram and WhatsApp Breakup Looms

Washington, D.C. Meta Platforms Inc., parent company of Facebook, Instagram, and WhatsApp, is heading to trial in a pivotal antitrust case brought by the U.S. Federal Trade Commission (FTC). The trial, starting this week before U.S. District Judge James Boasberg, could lead to an unprecedented court-ordered breakup of Meta’s flagship platforms.

FTC Targets “Killer Acquisitions” of Instagram and WhatsApp

The FTC alleges that Meta’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were “killer acquisitions” designed to eliminate competition and maintain monopoly power in the personal social networking market. The agency claims these deals stifled innovation, led to increased ads, and weakened user privacy.

If the FTC prevails, Meta may be forced to divest both Instagram and WhatsApp, unraveling years of platform integration and jeopardizing billions in advertising revenue. The trial will include testimony from CEO Mark Zuckerberg and former COO Sheryl Sandberg.

Meta responded by stating, “We’re confident the evidence will show that the Instagram and WhatsApp acquisitions have been good for competition and consumers,” criticizing the FTC for revisiting transactions approved over a decade ago.

Trump Administration’s Role and Political Influence

The case carries significant political undertones. President Donald Trump revoked previous AI and antitrust policies earlier this year, replacing them with a more aggressive pro-tech innovation agenda. Meanwhile, Meta CEO Mark Zuckerberg has reportedly lobbied the administration for support.

Two Democratic FTC commissioners were dismissed in March, leaving the agency under Republican control. Legal experts suggest that if Meta loses, Trump could pressure the remaining commissioners to settle during the appeals phase.

FTC Chair Andrew Ferguson has publicly committed to pursuing the case but acknowledged he would follow any lawful directive from the president to drop it.

A Defining Moment for Tech Antitrust

This trial is one of several major antitrust cases against Big Tech currently underway. A week after the Meta trial begins, Google will face its own scrutiny two floors above in the same courthouse over allegations of search engine monopolization.

The FTC defines the relevant market as “personal social networking services,” emphasizing communication between friends and family. It contends that Meta’s only remaining competitors are Snapchat and smaller platforms like MeWe. Meta counters by pointing to fierce competition from TikTok, Elon Musk’s X (formerly Twitter), and YouTube.

The trial will spotlight internal Meta emails, including a now-famous message from Zuckerberg stating, “It is better to buy than compete,” in reference to the Instagram acquisition.

Long-Term Legal Battle Likely

Judge Boasberg will first determine if Meta’s acquisitions violated antitrust laws. If found guilty, a second trial phase would determine appropriate remedies. A breakup could take years to finalize.

Meta also faces a separate FTC lawsuit over alleged violations of a 2019 privacy agreement and a $5 billion fine. A related investor lawsuit in Delaware is scheduled for later this year.

Market analysts remain cautiously optimistic. “I don’t think investors are bracing for a breakup,” said Wolfe Research’s Shweta Khajuria. “A settlement would be a more favorable outcome than stretching this out, which leaves an overhang on the stock.”

As the trial begins, the future of Meta—and the structure of the modern social media landscape—hangs in the balance.