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Meta is not a monopolist, judge rules

Meta is not a monopolist, judge rules

On Tuesday, a U.S. District Court judge ruled that Meta – the parent company of Facebook, Instagram and WhatsApp – has not unfairly monopolized the personal social networking market. This decision marks a significant win for Meta in its long‑running antitrust case with the Federal Trade Commission (FTC).

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What the Judge Decided

Judge James Boasberg wrote that the FTC failed to prove that Meta still holds an illegal monopoly in a market that has shifted dramatically since the suit was filed. He noted that the rapid rise of TikTok and the blurred lines between social networking and social media apps mean Meta’s platforms are now reasonably interchangeable with competitors like TikTok and even YouTube.

Because the FTC’s argument hinged on past dominance and its “uphill battle” to define the market, the judge determined that Meta does not currently hold monopoly power. The ruling also means Meta can keep its recent acquisitions – Instagram and WhatsApp – without immediate FTC‑ordered divestitures.

Why This Matters for Meta

Meta’s spokesperson, Chris Sgro, said the decision confirms “fierce competition” in the space and underscores the company’s role in American innovation and economic growth. With this win, Meta can focus on future growth without the looming threat of forced unbundling from its flagship apps.

Context: FTC’s Mixed Tech Track Record

FTC has faced recent setbacks against Meta. Earlier this year, the agency lost a separate case that let Meta acquire the virtual‑reality fitness startup Within. The antitrust case against Meta first began under the Trump administration and was amended during the Biden administration, with trial proceeding during the latter’s second term. In contrast, the Justice Department has seen more success against Google in its search and ad‑tech monopolization cases.

What Happens Next?

The FTC can appeal Judge Boasberg’s decision, but for now, Meta retains control over its key social media assets. The case highlights the evolving nature of the social media landscape and the difficulty regulators face in applying traditional monopoly concepts to rapidly changing technology markets.

“The FTC’s hypothesis about how people use these apps is consistently disproven by the data,” Judge Boasberg wrote.

For full court documents and more detailed analysis, view the official ruling here.

Source: https://www.theverge.com/news/823191/meta-ftc-antitrust-trial-ruling

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