Mark Zuckerberg’s Empire In Jeopardy As Meta Faces Antitrust Battle In Court – Meta Platforms (NASDAQ:META)

Meta Platforms Inc META, the $1.3 trillion empire of Mark Zuckerberg, is gearing up to battle an antitrust lawsuit.

What Happened: Meta is bracing for a legal showdown with the U.S. government’s antitrust watchdogs on Monday. The impending case, to be heard in a Washington court, could result in Zuckerberg being forced to divest Instagram, one of Meta’s most valuable assets.

This lawsuit has the potential to disrupt Meta’s dominance in the tech industry.

The U.S. government’s case against Meta is largely built on claims by the Federal Trade Commission (FTC) that Facebook, Meta’s flagship social media platform, leveraged its monopoly power to acquire rather than compete with smaller social media rivals, reports the Verge.

According to the FTC, these acquisitions bolstered Meta’s ability to track its users across the internet and monopolize the online advertising market.

A spokesperson for Meta has disputed the FTC’s lawsuit, arguing that it mischaracterizes Facebook as a monopolist by overlooking its main competitors in the social media market.

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The spokesperson underscored that Instagram, Facebook, and WhatsApp compete with a multitude of other platforms, including TikTok, YouTube, and iMessage.

The FTC initially filed its complaint against Facebook during President Trump’s first term. The case was initially dismissed but was later accepted when an amended complaint was refiled during former President Biden’s administration.

Regulators are now advocating for the judge to reestablish fair competition in the personal social networking services market by ordering the divestment of Instagram and a court-ordered spin-off of Meta’s messaging service, WhatsApp.

Emarketer has revealed that Instagram contributed $32 billion to Meta’s U.S. ad revenue in 2024, accounting for 48.4% of its $1.3 trillion in total revenue. Consequently, a divestment of Instagram would significantly affect Meta’s bottom line.

Why It Matters: This lawsuit comes at a time when tech giants are facing increased scrutiny over their business practices. The outcome of this case could set a precedent for future antitrust cases in the tech industry.

Furthermore, the potential divestment of Instagram and WhatsApp could drastically alter the landscape of social media and online advertising, impacting both users and advertisers.

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