In a landmark decision that delivers a massive victory for the tech giant, a United States federal court has thrown out a major antitrust lawsuit against Meta, the parent company of Facebook, Instagram, and WhatsApp.
Court Rules Meta Faces Fierce Competition
The ruling was delivered on Tuesday by Judge James Boasberg of the federal district court in Washington, D.C. The judge concluded that Meta does not hold a monopoly in the social media market. He based this decision on the finding that the company faces substantial and sufficient competition from other platforms, specifically naming TikTok and YouTube as key rivals.
This legal battle had been ongoing for five years, after the US Federal Trade Commission (FTC) filed a suit. The government agency had claimed that Meta illegally maintained a monopoly by acquiring Instagram in 2012 and WhatsApp in 2014 to eliminate potential competitive threats.
Why the Judge Rejected the Monopoly Claim
The FTC had argued that platforms like Facebook and Instagram operate in a distinct market focused on connecting friends and family, which is separate from video entertainment platforms like TikTok and YouTube. They claimed this unique hold allowed Meta to build out its products and generate billions in profits every quarter.
However, Judge Boasberg found that this distinction is no longer valid in today's digital landscape. The court cited compelling data showing that the core features of these platforms have converged. For instance, Americans now spend only 17 percent of their time on Facebook viewing content from friends, and a mere seven percent on Instagram.
Instead, user engagement is dominated by algorithmically recommended short-form videos, such as Reels. "Facebook, Instagram, TikTok, and YouTube have thus evolved to have nearly identical main features," Judge Boasberg wrote, noting that users now treat these services as interchangeable substitutes.
A Major Setback for US Antitrust Enforcers
The ruling represents a significant setback for US authorities who have been aggressively pursuing antitrust action against Big Tech companies. This case was one of five major lawsuits launched by the government against tech giants, including cases against Google, Apple, and Amazon.
Meta welcomed the decision, stating it was pleased with the judge's recognition of the "fierce competition" it faces. The company also expressed its intention to work with the Trump administration and to continue investing in America. Ahead of the trial that began in April, Meta CEO Mark Zuckerberg had made several visits to the White House.
This outcome echoes a similar ruling from September, where a different US judge rejected a government bid to break up Google, citing competition from new AI actors like ChatGPT.
Vidushi Dyall from the Chamber of Progress, a big tech lobby group, supported the ruling, stating, "Judge Boasberg correctly grasps how dynamic digital markets are... Even large tech companies still face intense competition."
