Metas fate in FTC antitrust trial in limbo as judge weighs possible breakup

Meta’s fate is up in the air after Mark Zuckerberg’s dirty laundry was aired in a landmark antitrust trial brought by the Federal Trade Commission – though some experts warn that the social media giant could wriggle out of the breakup sought by regulators.The seven-week trial concluded Tuesday after multiple bombshells about Meta’s inner workings – including a 2012 email in which Zuckerberg admitted buying Instagram would “neutralize a competitor” and internal reports showing executives panicking that Instagram was steering minors toward adult sex creeps it called “groomers.”Despite the embarrassing evidence, the case’s outcome is expected to hinge on how US District Judge James Boasberg defines the market in which Meta operates.The FTC argued that Meta has an illegal monopoly over a narrowly-defined market of social media firms built on friends-and-family connections, with Snapchat as its only real competitor.Meta pushed back, arguing its apps face tough competition from rivals like TikTok and Google-owned YouTube for user attention.Meta has called the FTC’s case “weak” and, in a show of confidence, wrapped up its defense earlier than expected last week after calling just a few witnesses.That’s a signal that its lawyers see the market definition issue as a strong argument against a breakup, according to Christine Bartholomew, an antitrust expert and professor at University at Buffalo School of Law.“In a monopoly case, the victor of the dispute on how to define the market is often the overall victor,” Bartholomew said.

“Like most defendants in these kinds of cases, Meta is arguing the market is broader. The larger the relevant market, the less the potential anticompetitive impact of Meta’s alleged conduct.”The FTC has accused Meta of using a “buy or bury” strategy to stifle upstart social media apps like Instagram and WhatsApp before they could threaten its social media empire.The agency wants a forced selloff of Instagra...