FTC v. Meta Trial: The Future of Instagram and WhatsApp Is at Stake

The US Federal Trade Commission's trial against Meta begins in Washington, DC on Monday, as the tech giant fights to avoid the spinoff of Instagram and WhatsApp. The FTC alleges that Meta illegally acquired the two startups in an effort to suppress competition. Meta (then Facebook) bought the photo-sharing startup Instagram for $1 billion in 2012. About two years later, the company snatched up the chat tool WhatsApp for roughly $22 billion. The FTC, one of the nation’s antitrust enforcement agencies, wants Judge James Boasberg to hold the tech giant liable for executing these mega deals to illegally maintain a social media monopoly. It has called on Boasberg to restore competition by ordering Meta to sell off its prized assets. A victory for the government could deter big tech companies from acquiring startups in the future, cutting off a key source of innovation and investment returns for venture capitalists. The initial trial could last up to 37 days, wrapping as late as early Jul ... Read full article.