Mark Zuckerberg defends Meta in landmark social media monopoly trial

On April 14, Meta CEO Mark Zuckerberg took the stand in the pivotal antitrust trial, defending the acquisitions of Instagram and WhatsApp, as the Federal Trade Commission accused Meta of maintaining an illegal monopoly over the social media landscape.

By  Storyboard18Apr 15, 2025 8:41 AM
Mark Zuckerberg defends Meta in landmark social media monopoly trial
Meta CEO Mark Zuckerberg has fiercely contested the US government’s case.

Meta CEO Mark Zuckerberg took the witness stand on April 14 to defend his company against allegations from the Federal Trade Commission that it acquired rival social media platforms to establish a market monopoly. Zuckerberg is expected to testify over two days, focusing on justifying Meta’s high-profile acquisitions of Instagram and WhatsApp.

The stakes in this case are particularly high. A victory for the FTC could force Meta to divest Instagram and WhatsApp— an outcome that would not only disrupt its digital advertising operations but also significantly alter the social media landscape.

FTC attorney Daniel Matheson reportedly called Mark Zuckerberg as the first witness in the trial, aiming to demonstrate that Meta acquired Instagram and WhatsApp to maintain its monopoly in the social networking market.

During opening statements, Matheson argued that Meta leveraged its dominant position to secure massive profits, even as user satisfaction declined. He accused the company of “erecting a moat” by acquiring Instagram and WhatsApp to protect its market dominance, as reported by AP.

During the proceedings, he highlighted a message Zuckerberg had sent to colleagues, expressing frustration over the company's slow progress in building a photo-sharing app to rival Instagram.

“The way I read this message is that I’m not happy about how we’re executing on that project,” Zuckerberg said.

Matheson pressed further, asking if Zuckerberg’s frustration stemmed from Instagram’s rapid growth. In his response, Zuckerberg pointed out that he is always urging his teams to do better. “That does seem to be what I’m highlighting,” he said.

Upon being questioned about the rapid growth of Instagram, he shared, “I don’t have the full timeline of Instagram’s development in my head...you could probably get that better from somebody else.”

Matheson also brought up comments suggesting Meta planned to keep Instagram operational but shift its focus to Facebook while limiting investment in Instagram. Zuckerberg pushed back on that interpretation, saying he wouldn’t describe it as a plan and denied the notion that Instagram was sidelined.

“In practice, we ended up investing a ton in it after we acquired it,” Zuckerberg added.

One of Meta’s attorneys, Mark Hansen, dismissed the FTC’s case as a “grab bag” of flawed arguments. He contended that Meta faces plenty of competition and has actually improved the startups it acquired. "This lawsuit, in summary, is misguided...anyway you look at it, consumers have been the big winners.”

At the center of the case are two pivotal acquisitions: Instagram, purchased in 2012 for $1 billion in cash and stock, and WhatsApp, acquired two years later for $22 billion. Both services, initially independent startups, now serve as pillars of Meta’s vast digital empire. The FTC argues that the deals were part of a broader strategy articulated by CEO Mark Zuckerberg in 2008: “It is better to buy than compete.”

Meta has fiercely contested the US government’s case. In a recent statement, the company described the lawsuit as ‘detached from reality,’ insisting that Instagram, WhatsApp, and Facebook face stiff competition from an array of modern platforms. The company also warned that the FTC’s actions undermine confidence in the regulatory process, noting that its acquisitions were reviewed and approved more than a decade ago.

The company added, “Regulators should be supporting American innovation, not weakening it to the benefit of foreign rivals, especially in areas as vital as artificial intelligence.” In filings last week, Meta emphasized that the FTC must prove the company currently holds monopoly power, not merely that it did at the time of the acquisition."

Meta’s future now rests in the hands of U.S. District Judge James Boasberg, who rejected the company’s request for summary judgment late last year, clearing the way for the case to proceed to trial.


Tags
First Published on Apr 15, 2025 8:41 AM

More from Storyboard18

Advertising

Navi Mumbai airport sells 70% of ad space before opening; Jewar follows close behind

Navi Mumbai airport sells 70% of ad space before opening; Jewar follows close behind

Digital

YouTube turns 20: 20 billion videos, 20 million daily uploads and a reinvention

YouTube turns 20: 20 billion videos, 20 million daily uploads and a reinvention

Digital

Apple to shift assembly of all US-sold iPhones to India by 2025

Apple to shift assembly of all US-sold iPhones to India by 2025

Advertising

UP govt plans to replace traditional hoardings with digital displays

UP govt plans to replace traditional hoardings with digital displays

Digital

Perplexity AI joins forces with Motorola to bring answer engine to smartphones

Perplexity AI joins forces with Motorola to bring answer engine to smartphones

Brand Makers

Rob Lake and the return of live spectacle in a digital world: The master of illusion in India

Rob Lake and the return of live spectacle in a digital world: The master of illusion in India

Brand Marketing

Zerodha’s Nithin Kamath raises alarm over apps misusing user data without consent

Zerodha’s Nithin Kamath raises alarm over apps misusing user data without consent

Digital

Alphabet Q1 2025: Google's ad revenue growth slows, hits $66.89 billion in the quarter

Alphabet Q1 2025: Google's ad revenue growth slows, hits $66.89 billion in the quarter