Top Meta executives, including CEO Mark Zuckerberg and former COO Sheryl Sandberg, are facing intense scrutiny as the Federal Trade Commission (FTC) begins a significant antitrust trial against the company. This trial, which started on Monday in Washington, D.C., could have major implications for Meta’s future.
The FTC claims that Meta, under Zuckerberg’s leadership, employed a “buy or bury” strategy. This means they allegedly overpaid for smaller companies like Instagram and WhatsApp to eliminate competition before these platforms could pose a threat to its dominance in social media. FTC attorney Daniel Matheson argued that this approach created barriers for new entrants in the market, allowing Meta to maintain its stronghold for over a decade.
Matheson highlighted that consumers currently lack reasonable alternatives to Meta’s platforms. The government is pushing for a breakup of the company, which would require Meta to spin off Instagram and WhatsApp into separate businesses. This move could significantly impact Meta’s revenue, as Instagram alone is expected to contribute over $37 billion to the company’s ad revenue this year.
In response, Meta’s attorney, Mark Hansen, argued that the FTC’s claims ignore the current social media landscape. He pointed out that users are spending more time watching short videos, similar to TikTok, rather than sharing posts. Hansen described the case as a collection of theories that clash with reality and legal standards.
Both Zuckerberg and Sandberg are expected to testify, with Zuckerberg potentially facing up to seven hours of questioning. The trial also features other notable figures, including Instagram co-founder Kevin Systrom and current Instagram chief Adam Mosseri.
In a surprising twist, Zuckerberg has been actively engaging with President Trump, reportedly lobbying for a settlement to the case. He has visited the White House multiple times and made significant donations to Trump’s inauguration efforts. Meta has also expressed concerns that the FTC’s actions could stifle innovation and benefit foreign competitors, particularly in the realm of artificial intelligence.
Despite Meta’s efforts to counter the allegations, the FTC is prepared to pursue the case vigorously. The agency’s chairman, Andrew Ferguson, has stated that they are ready to take the matter to trial. The case was originally filed in 2020 during Trump’s presidency.
As the trial unfolds, the stakes for Meta are incredibly high. If the FTC succeeds, it could reshape the company and the broader tech landscape. The outcome remains uncertain, but it is clear that this trial represents a critical moment for both Meta and the future of competition in the tech industry.
