has instagram-and-whatsapp/” rel=”nofollow noopener” target=”_blank” data-ylk=”slk:asked a judge;cpos:2;pos:1;elm:context_link;itc:0;sec:content-canvas” class=”link “> dismiss an antitrust case against the company before it goes to trial. Along with 48 states and territories, in an attempt to force the company to divest instagram and WhatsApp, which it bought in 2012 and 2014, respectively.
The agency and dozens of attorneys general claim that Meta (then known as facebook) bought the two platforms to stifle competition. Meta CEO Mark Zuckerberg “recognized that by acquiring and controlling instagram, facebook would not only suppress the direct threat posed by instagram, but would also significantly prevent another company from using mobile photo sharing to gain popularity as a provider of personal social networks. ”stated the FTC. “Like instagram, WhatsApp presented a powerful threat to facebook's personal social media monopoly, which facebook targeted acquisition rather than competition.”
Meta points out that the FTC not only approved both acquisitions in the first place, but its initial complaint was dismissed for failing to present a plausible claim. While a judge allowed an amended lawsuit to move forward, Meta claims that “the agency has done nothing to build its case through the discovery process” to show that the company has monopoly power in the market for “social media services.” personal” and that caused harm to consumers and competition through purchases.
In its motion for summary judgment, the company points out that instagram, which accounted for nearly 30 percent of the company's total revenue instagram-generated-almost-30-of-meta-s-revenue-in-early-2022?sref=10lNAhZ9″ rel=”nofollow noopener” target=”_blank” data-ylk=”slk:in the first half of 2022;cpos:5;pos:1;elm:context_link;itc:0;sec:content-canvas” class=”link “>, wasn't making money when it bought the service for $1 billion in 2012. instagram had just two percent of the billion-plus users it has now, Meta says, adding that it introduced features like direct messages, streaming live, Stories and shopping. As for WhatsApp, Meta made the service free to use, added end-to-end encryption, and implemented voice and video calling.
Meta maintains that it has invested billions of dollars and millions of hours of work in the applications. He claims that both instagram and WhatsApp are in a better position as a result, to the benefit of consumers and businesses.
Elsewhere, Meta argues that the FTC failed to establish a relevant antitrust market, claiming that the agency's definition of a market for “personal social networking services” used “an artificially limited set of just four companies – facebook, instagram, Snapchat and MeWe – ignoring many of the most popular activities people do on facebook and instagram.” For example, Meta notes that YouTube and TikTok offer similar deals to Reels.
What's more, the FTC's allegation that Meta has a “dominant share” of the artificial “personal social networking services market” does not hold water, according to the company. Meta says that's because the FTC's “market share figures are meaningless without a properly defined market.”
Meta, who accused the FTC of exercising “structurally unconstitutional authority” against the company, also took the opportunity to further attack the agency and antitrust rules. “The decision to review closed deals is tantamount to announcing that no sale will be final,” said Jennifer Newstead, Meta's legal director. instagram-and-whatsapp/” rel=”nofollow noopener” target=”_blank” data-ylk=”slk:wrote in a blog post;cpos:8;pos:1;elm:context_link;itc:0;sec:content-canvas” class=”link “>. Newstead says the instagram and WhatsApp lawsuit “not only casts doubt and uncertainty on the US government's merger review process and whether company acquisitions can truly rely on the results of the regulatory review process, but It will also make companies think twice before investing in innovation.” since they can be punished if that innovation leads to success.”
