Over the course of five weeks, the Federal Trade Commission (FTC) urged a federal judge to envision a landscape in which Instagram and WhatsApp thrived independently, instead of under the ownership of Meta Platforms. In the concluding week of the trial, Meta countered this narrative, suggesting to Judge James Boasberg that the apps might have achieved their maximum potential under its umbrella.
Meta wrapped up its case on Wednesday after just four days of testimony, a duration shortened by the fact that many of its witnesses had previously testified for the FTC. During this period, Meta presented Brian Acton, a cofounder of WhatsApp, alongside an early executive from Instagram’s infrastructure team. Their testimonies were aimed at challenging claims made by Instagram cofounder Kevin Systrom, who argued that Meta had deliberately starved Instagram of resources that could have facilitated its growth and safety, asserting that the platform would have succeeded independently.
Meta’s defense posited that rather than emerging as rivals capable of counterbalancing Meta’s extensive influence, Instagram and WhatsApp could have become lesser platforms, lacking the utility and accessibility they currently offer users.
Witnesses for Meta highlighted a significant factor in the current social media landscape: TikTok. The FTC has maintained that entertainment-centric apps like TikTok and YouTube do not fall within the personal social networking market that it claims Meta has monopolized. In contrast, Meta argued that the FTC’s definition fails to account for the competitive dynamics of the social media environment. The company’s position emphasizes that genuine competition stems from a struggle for user engagement, creator content, and advertising revenue.
”Antitrust law does not require consideration of such an ‘infinite range’ of possible substitutes”
Economic analysts supporting Meta contended that TikTok’s swift expansion represents a legitimate competitive threat that merits consideration in this case. Despite TikTok’s growth as a rival to Meta’s services since the FTC originally filed its case in 2020, Judge Boasberg cautioned that Meta’s argument about competition for users’ attention, although accurate, may be beside the core issue at hand. He expressed concern that accepting Meta’s view would imply that the company competes not only with platforms like YouTube and TikTok but with all potential pastimes, including watching a movie or reading a book.
Judge Boasberg also indicated that the government’s claims might stretch the limits of existing antitrust laws. Throughout the proceedings, he appeared to be receptive to the argument presented by Meta’s chief marketing officer, Alex Schultz, who suggested that Facebook and Instagram had peaked in U.S. user acquisition. While the FTC suggested that Meta’s growth rate might seem sluggish due to the saturation of potential users, Schultz argued that continuous competition for user engagement with platforms like TikTok and YouTube is crucial for future growth.
The judge later questioned the FTC’s chief economic expert, Scott Hemphill, about this assertion, noting the challenges that would arise for Instagram in expanding its U.S. user base. Hemphill maintained that the current scale of Instagram does not inherently signify an improvement in the social media landscape for consumers, arguing that without Meta’s ownership, the overall personal social networking market could have delivered higher consumer benefits and app quality.
“Meta is a proud American success story”
Meta contends that the FTC is fixated on outdated perspectives, overestimating the significance of interpersonal sharing on its platforms. Acknowledging that some users continue to seek connections through its services, the company has introduced “OG Facebook,” which allows users to scroll through a feed comprised solely of shared posts among mutual connections, distancing itself from the algorithm-driven content that dominates the 2025 Facebook experience.
Judge Boasberg is now tasked with determining whether social media’s role in fostering friendships is significant enough to constitute a unique market where Meta holds dominance. However, he dismissed Meta’s plea for an early ruling in its favor, noting he is not ready to make a decision at this point. If he sides with the FTC, there is a likelihood that the government will pursue the divestiture of apps that Meta has acquired over the years.
Meta claims that such an action would undermine the innovation that the FTC argues it aims to protect. “After six weeks seeking to challenge acquisitions that were made over a decade ago, the FTC has only succeeded in highlighting the dynamic and competitive nature of the tech industry,” stated Meta spokesperson Chris Sgro. “Meta is a proud American success story, and we look forward to continuing to innovate and serve the people and businesses who rely on our services.”
