Meta CEO Mark Zuckerberg took the stand in a Washington, D.C. courtroom Monday to defend his company against federal accusations of monopolistic behavior in what may become a landmark antitrust showdown.
This is the first major tech antitrust case pursued under President Trump’s Federal Trade Commission, and the outcome could determine whether Meta Platforms, parent of Facebook, Instagram, and WhatsApp, will be forced to break apart.
The Federal Trade Commission (FTC), now under the Trump administration’s watch, launched its case by alleging that Meta engaged in “anticompetitive conduct” by acquiring Instagram in 2012 and WhatsApp in 2014. These acquisitions, the agency claims, were designed to eliminate market threats rather than foster innovation.
“There’s nothing wrong with Meta innovating,” said Daniel Matheson, the FTC’s lead attorney, during opening statements. “It’s what happened next that is a problem.”
According to the FTC, Meta’s control over these apps has stifled competition, giving it too much influence over the global social media landscape.
‘Our Services Are Free’
Meta’s legal team, led by attorney Mark Hansen, countered that there is no legitimate case for monopoly when users aren’t charged a cent. “How can the FTC maintain this monopolization case when it has never charged users a cent?”
Hansen asked, referring to the fact that Meta’s platforms are free to use and heavily competed with by TikTok, YouTube, Snapchat, and X (formerly Twitter).
Zuckerberg was the first to testify, underscoring Meta’s position that the company “did nothing wrong” in acquiring Instagram and WhatsApp—both of which, the defense argued, flourished under Meta’s ownership.
Historic Trial Could Force Meta to Break Up
The trial, expected to span several weeks, could be the most significant legal challenge in Meta’s 20-year history.
At stake is whether the company will be forced to divest Instagram and WhatsApp, platforms that not only generate significant revenue but also serve as key pillars of Meta’s advertising business.
According to eMarketer analyst Jasmine Enberg, Instagram alone contributes half of Meta’s total ad revenue, making the stakes extremely high. “Instagram has been picking up the slack for Facebook, particularly among younger users,” she said. “Meta needs Instagram to grow, especially as advertisers increasingly focus on Instagram-first campaigns.”
Trump’s FTC Sends Clear Message to Big Tech
The case, which began under Trump in 2020, had initially been dismissed in 2021 but was revived after the FTC filed an amended complaint.
Now, under Trump’s second term, the FTC is flexing its muscle in a bold attempt to rein in Big Tech and protect free-market competition.
Meta’s leadership has labeled the case as “politically motivated” and a dangerous precedent for American innovation. In a recent statement, Meta said, “This weak case is costing taxpayers millions of dollars” and warned that the lawsuit will discourage future tech investments if success is punished rather than celebrated.
“The FTC’s lawsuit against Meta defies reality,” a spokesperson told CBS MoneyWatch.
“Instagram, Facebook, and WhatsApp compete directly with TikTok, YouTube, iMessage, and X. This case sends the message that no business acquisition is ever truly final, no matter how long ago it was cleared by regulators.”
FTC Seeks Precedent-Setting Ruling on Future Mergers
In addition to divestment, the FTC is demanding that Meta provide prior notice for any future acquisitions, signaling a more aggressive regulatory stance on mergers and expansion in tech. If successful, this could change how Silicon Valley giants operate going forward.
Judge James Boasberg, who is presiding over the case, had previously called the original 2020 suit “legally insufficient” but allowed it to proceed after revisions. Monday’s courtroom drama marks day one of the trial, but the economic and constitutional implications may stretch far beyond its final verdict.
As President Trump’s FTC challenges Meta in federal court, the trial raises bigger questions about the future of American tech and the government’s role in regulating it.
With information from CBS News
