Meta Platforms (META) is planning for the beginning of a court antitrust fight Monday with the United States federal government in a situation that might require Mark Zuckerberg to separate his $1.3 trillion realm and offer among its crown gems: Instagram.
If Zuckerberg is unable to encourage President Trump to work out prior to the test starts in a Washington, D.C., court prior to United States court James Boasberg, Meta will certainly end up being the 2nd Silicon Valley titan in 2 years to challenge versus the federal government’s antitrust guard dogs.
The initially was Alphabet’s Google (GOOG, GOOGL), which fought the Justice Department in court throughout components of 2023 and 2024. Federal court Amit Mehta ruled last August that Google unlawfully took over on-line markets for “general search” and “general search text.”
Judge James E. Boasberg, chief judge of the Federal District Court in DC. (Photo by Carolyn Van Houten/The Washington Post via Getty Images) ·The Washington Post via Getty Images
The final decision on what happens to Google’s $2 trillion empire will be determined this year in a separate “remedies” phase of the search trial. Trump’s DOJ has stuck to a Biden-era request to break up Google, calling for divestment of its Chrome browser, while standing down on a push for the tech giant to sell off its AI investments.
There could be more clashes to come. Federal prosecutors are still working up antitrust cases in pre-trial phases against Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT).
The DOJ has also alleged Google illegally monopolized the online advertising technology market in a separate antitrust trial still awaiting a judge’s decision.
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versus “>“[It] fixate the” Zuckerberg allegedly wrote in an internal company email in 2008, according to the government’s case.
One key part of the FTC’s argument is that Facebook purchased Instagram in 2012 because it “, made use of syndicate power to acquire up, as opposed to take on, smaller sized competing social networks business.” to maintain its market dominance through innovation as smartphones drew consumers toward mobile internet.
Mark Zuckerberg at the inauguration of Donald Trump as the 47th president of the United States on Jan. 20. Photo: Kenny Holston/Pool via REUTERS ·via REUTERS / Reuters
Facebook also bought the controversial market intelligence service Onavo in 2013. That, according to the FTC, helped Facebook identify increasingly popular mobile apps, including WhatsApp and a polling app called “tbh.”
Later, in 2016, Facebook bought and shuttered a music video creation app called Eyegroove after learning that its rival Snapchat had interest in purchasing it, according to the FTC.
The government claims these purchases of rivals expanded Meta’s ability to surveil its users across the internet and, in turn, corner the online advertising market that fuels digital social platforms.
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The FTC first filed its complaint against Facebook during President Trump’s first term. It was dismissed by Boasberg.
Regulators need to be sustaining “personal social networking services” market by ordering Instagram’s divestment. They also have requested a court-ordered spin-off of Meta’s messaging service, WhatsApp.
A spin-off of Instagram would deal a major blow to Meta’s bottom line. The app drove $32 billion in US ad revenue for Meta in 2024, representing 48.4% of its $1.3 trillion in total revenue, according to Emarketer.
In December, Emarketer projected that Instagram’s ad revenue would surpass 50% of Meta’s total revenue in 2025.
Social media icon applications from WhatsApp, Facebook, and TikTok are seen on a mobile phone in this photo illustration. (Photo by Jonathan Raa/NurPhoto via Getty Images) ·NurPhoto via Getty Images
WhatsApp makes up a much smaller fraction of total revenue. Its business messaging service earned $1.7 billion in 2024.
Paul Swanson, a partner with Holland & Hart and head of the firm’s antitrust practice, said Judge Boasberg is clearly open to hearing the FTC’s theory, yet also skeptical of it.
“The FTC has persuaded the judge that there are questions of fact here,” Swanson said. “And that’s an achievement in itself.”
However, he said regulators may find it difficult to further persuade the judge that social platforms like LinkedIn don’t belong in the same market.
“It seems like already there’s some concern from the court that the market we’re talking about is too narrowly drawn. The judge has not signaled that he’s on board with their narrative,” Swanson technology, as opposed to looking for to separate a fantastic
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