Meta vs. FTC: Inside the Landmark Antitrust Trial Over Instagram and WhatsApp Acquisitions
In a pivotal legal battle with significant implications for the future of social media and tech regulation, Meta Platforms (formerly Facebook) is currently defending its past acquisitions of Instagram and WhatsApp against a landmark antitrust case brought by the US Federal Trade Commission (FTC). The trial, which commenced in Washington D.C. in the week of April 14, 2025, centers on the FTC's assertion that these strategic purchases were not merely business expansions but deliberate actions taken to neutralize emerging competitive threats and solidify Meta's dominance in the social networking landscape. The regulatory body is seeking the drastic remedy of unwinding these multi-billion dollar deals, aiming to restore what it views as a stifled competitive environment.
Meta acquired the photo-sharing platform Instagram in 2012 for approximately $1 billion and the messaging service WhatsApp in 2014 for roughly $19 billion. At the core of Meta's defense is the argument that these acquisitions were instrumental in the explosive growth and evolution of both platforms. The company contends that without the significant resources, infrastructure, and expertise provided by Meta, Instagram and WhatsApp would not have achieved their current scale and might not have survived as viable competitors on their own. This narrative directly challenges the FTC's claim that the companies were on independent paths to becoming significant rivals to Facebook.
Central to Meta's defense has been the testimony of its CEO, Mark Zuckerberg. According to live reporting from The Verge, Zuckerberg maintained under oath that his intent behind the acquisitions was never to stifle competition. Regarding Instagram, he stated, “Was the intent to stop offering or stop making Instagram good? Absolutely not.” He explained that his initial hope was merely to scale Instagram's user base tenfold, a goal that was vastly exceeded by 2018 when the platform had grown hundredfold under Meta's stewardship. Zuckerberg and the Meta legal team have consistently emphasized that the company has always faced, and continues to face, robust competition across its various platforms, citing rivals such as TikTok, YouTube, Google Plus (in its time), and iMessage.
The trial has unfolded over several weeks, with both sides presenting expert witnesses, internal documents, and testimony from current and former executives to support their respective cases. The proceedings have offered a rare public glimpse into the strategic thinking and competitive dynamics within the upper echelons of one of the world's most powerful technology companies.
Key Developments and Testimonies
The trial has seen a series of dramatic moments and conflicting accounts. Here's a look at some of the significant days:
Day 1: Monday, April 14
The opening day set the stage, immediately highlighting a core dispute: the definition of the relevant market. The FTC argues that Meta holds a monopoly in the market for social apps that “connect friends and family,” a definition it contends excludes platforms like TikTok. Meta, however, pushed back forcefully, arguing that TikTok is a direct and significant competitor. As evidence, Meta cited a spike in Facebook and Instagram usage (20% and 17% respectively) when TikTok faced a temporary ban in the US in January 2025, as reported by The Verge. Meta's strategy is to prove the FTC's market definition is too narrow, thereby undermining the claim of monopolization within that defined space. The court also heard that in February 2012, Zuckerberg considered acquiring Instagram but also contemplated leaving it alone to avoid creating a market void, though he ultimately pursued the acquisition.
Day 2: Tuesday, April 15
Mark Zuckerberg's testimony continued, facing questions about a February 2012 email exchange where he agreed with CFO David Ebersman's suggestion that acquiring Instagram could “neutralize a potential competitor.” Zuckerberg explained this by stating that any acquisition inherently removes a competitor from the market. He acknowledged that Meta could have built a competing app but stated its success would have been speculative, according to the BBC. Internal emails from before the Instagram acquisition revealed Zuckerberg's concern that Meta was “so far behind” in photo-sharing and that falling further behind was “really scary,” as reported by Mashable. Meta did start building a competing product, Facebook Camera, but Zuckerberg ultimately scrapped it in favor of the acquisition after realizing it wouldn't catch up. Regarding WhatsApp, Zuckerberg admitted he was “worried” about messaging apps like WeChat “broadly competing with (Meta)” before the acquisition. Messages from January 2013 showed him suggesting blocking ads from WeChat, Kakao, and Line because they were “trying to build social networks and replace us,” according to The Verge. The day also revealed Zuckerberg's past considerations, including buying Snapchat, creating an ads-only Facebook feed, deleting users' friends lists, and even spinning out Instagram into its own company, the latter considered due to anticipated regulatory scrutiny.
Day 3: Wednesday, April 16
Zuckerberg continued his testimony, reiterating the significant competitive pressure from TikTok, stating that Facebook's growth “slowed down dramatically” upon TikTok's rise, according to The Verge. He mentioned not pursuing an acquisition of Musical.ly (TikTok's precursor) due to its connection to China. He also acknowledged YouTube as a competitor, particularly as video became more popular, though YouTube is not included in the FTC's narrow market definition. The FTC pressed Zuckerberg on the concept of “network effects,” arguing that Facebook's large, established user base creates a self-reinforcing cycle that makes it difficult for competitors to gain traction. Zuckerberg countered that network effects can also be detrimental, leading to cluttered feeds and potential user churn, which is why he considered drastic measures like resetting friend lists. Regarding WhatsApp, he maintained the acquisition wasn't to hinder its growth, as he believed the founders had no plans to compete directly and had to be persuaded to add more competitive features. Former Meta COO Sheryl Sandberg also took the stand, expressing concern over Google Plus's launch in 2011, describing it as “almost an exact replica” of Facebook.
Day 4: Thursday, April 17
Sheryl Sandberg testified at length, emphasizing TikTok's fierce competition and its correlation with a decrease in Instagram's revenue. She defended Meta's advertising practices, asserting they don't harm user experience. A notable revelation was a slide indicating Facebook considered a paid, ad-free model in 2018, following the Cambridge Analytica scandal. The FTC called Jim Goetz, a WhatsApp investor from Sequoia Capital, who testified that WhatsApp viewed Facebook, not Apple's iMessage, as a competitor. This testimony aimed to support the FTC's argument that WhatsApp had the potential to thrive independently of Meta, according to The Verge.
Day 5: Monday, April 21
Jihoon Rim, a management professor and former CEO of messaging app Kakao, testified for the FTC. He described WhatsApp and Instagram's pre-acquisition growth as “exceptional” and noted that WhatsApp's lead investor saw it receiving more engagement than Facebook, according to The Verge. Rim argued that WhatsApp would likely have moved towards social networking and advertising for monetization, as its subscription model was unsustainable. He presented a Morgan Stanley note suggesting a WhatsApp-Google collaboration could create the “predominant social network on Mobile,” challenging Meta's narrative. However, Neeraj Arora, who worked on Google's WhatsApp acquisition offer before joining WhatsApp, testified that ads were “not even a discussion point” at the time, according to The Verge. A recorded interview with Sequoia's Roelof Botha supported the FTC's case, suggesting Sequoia could have helped Instagram scale independently and that the high acquisition price might have been more about eliminating a threat than a sound investment.
Day 6: Tuesday, April 22
Former Instagram CEO Kevin Systrom testified for the FTC, presenting a starkly different view from Meta's executives. He argued that Instagram's initial growth was “exponential, unstoppable” and that the first slowdown occurred after joining Facebook, according to The Verge. Systrom claimed he was already planning features like video and messaging and had pitched an ad model similar to what exists today. He characterized Zuckerberg's purchase as a “screaming deal,” given Instagram's subsequent value. While admitting the probability of Instagram failing without Meta was low but not zero, he denied Meta significantly improved the app's safety or reliability, stating Instagram managed spam pre-acquisition and received “zero” trust and security headcount from Meta initially. Systrom alleged Meta took steps to sabotage Instagram's success, including withdrawing dedicated growth team members, removing Instagram-benefiting Facebook integrations, and allowing a spat with Twitter to restrict Instagram's API access. He claimed Zuckerberg “was not investing in Instagram” because he saw it as a threat to Facebook.
Day 7: Wednesday, April 23
Dirk Stoop, Meta's former product manager for Facebook Camera, testified. The FTC suggested Facebook Camera was created solely to compete with Instagram and was abandoned post-acquisition. Stoop's internal notes from January 2012 showed Instagram's rapid growth making Facebook Camera's launch a “huge priority,” according to The Verge. A May 2012 document listed “messages to avoid” in Camera's promotion, including phrases like “Facebook Camera launches filters, like Instagram” and “Facebook squashes competition.” Stoop defended Meta, stating these messaging choices aimed to prevent pigeonholing and that Camera and Instagram had distinct purposes (friends/family vs. broader discovery). He noted the Camera team grew for two years post-acquisition, and its features were integrated into the main Facebook app, suggesting the goal wasn't competition elimination but feature enhancement. The FTC also presented expert witness Professor Cliff Lampe, who classifies Facebook and Instagram as “personal social networking,” distinct from platforms like TikTok, YouTube, Reddit, and LinkedIn. He defined them as enabling “mass personal, low-cost maintenance of relationships with broad networks of real-life personal connections,” supporting the FTC's narrow market definition, according to MLex.
Day 8: Thursday, April 24
Details from this day were limited in the provided report, noting testimony from FTC financial analyst Kevin Hearle and former TikTok executive Blake Chandlee via video link. Further information was not publicly available at the time of the source report.
Day 9: Monday, April 28
Executives from several social media platforms testified for the FTC, aiming to show their apps are not direct competitors to Facebook and Instagram, thereby bolstering the FTC's argument for a distinct “personal social networking services” market. X VP of Product Keith Coleman dismissed an X Help Centre description calling it a “service for friends, family, and coworkers,” calling it “pretty wacky” and outdated, according to The Verge. He cited a 2018 email from ex-CEO Jack Dorsey wanting Twitter to focus on its “strength of interest network.” Strava executive Mateo Ortega stated his app is “all about fitness” but admitted Facebook and Instagram “can compete for content related to workouts.” Reddit executive Winter Raymond highlighted the importance of pseudonyms on Reddit, differentiating it from real-life connection platforms. Pinterest's former director Julia Roberts said people and “following” aren't a big part of Pinterest, though a 2017 assessment noted overlap and feature replication with Instagram. Representatives from cloud providers AWS and Microsoft Azure also testified, explaining how their services enable digital companies to scale affordably, supporting the FTC's claim that Instagram could have grown without Meta's infrastructure, according to The Verge.
Day 10: Tuesday, April 29
Meta COO Javier Olivan testified. The FTC sought to define Facebook solely as a personal social networking platform. Olivan countered that a small portion of Facebook users have no connections on the platform, according to The Verge. The FTC presented a 2012 email where Olivan instructed staff to track competing messaging apps adding social features to argue for doubling down on Messenger, and internal communications showing his concern that Messenger might not survive and his opposition to rival messaging apps advertising on Facebook. Despite this, Olivan testified Meta didn't buy WhatsApp out of fear it would become a social network, though he tracked its growth and feared Google might acquire it. He described the path for WhatsApp to become a social competitor as having a “huge chain of ifs.” Olivan acknowledged the minimal impact of the 2018 Cambridge Analytica scandal on user base, which the FTC used to underscore Meta's market power, according to The Verge. He asserted Meta had no intention of shutting down Instagram, citing a 2012 email noting Instagram founders struggled to keep the site running post-acquisition and offering growth suggestions. The trial also compared Meta's apps to iMessage; the FTC noted iMessage doesn't automatically create profiles for unknown contacts, while Meta argued iMessage is listed under social networking on the App Store and automatic friend adding is common, so Facebook's network effects aren't a unique monopolistic advantage.
Day 11: Wednesday, April 30
Adam Presser, TikTok's head of operations and trust and safety, testified, stating TikTok does not compete with Meta on personal social networking, supporting the FTC's market definition, according to The Verge. He noted users spend only 1% of their time in the Friends tab. Meta aimed to show it competes in broader markets and faces TikTok competition, highlighting similar interfaces between TikTok and Instagram Reels. Presser argued different recommendation algorithms make content distinct. Meta's attorney countered with TikTok documentation calling YouTube and Instagram its “most important competitors” and noting users turn to Instagram during TikTok outages. Meta also used TikTok's court filings regarding a potential US ban, where TikTok admitted creating a standalone US app could take years without ByteDance, to argue that large companies like Meta are necessary for smaller apps like Instagram to scale infrastructure and moderation, supporting the idea that the Instagram acquisition wasn't to block competition but enable growth. Separately, a provision to strip the FTC of antitrust authority was dropped from a US House Judiciary Committee budget package.
Day 12: Thursday, May 1
Meta presented arguments that user loyalty stems from product quality, not lack of alternatives. Research executive Curtiss Cobb testified that users remained engaged even during backlash events like Cambridge Analytica or changes to fact-checking policies because the core product didn't change, according to The Verge. Chief Revenue Officer John Hegeman argued Meta's ad practices don't bother users, citing “very little interest” in Meta's ad-free subscription in Europe and minimal usage increase when ads were reduced by 80% for some users, according to TechRepublic, as reported by The Verge. Meta views TikTok as a competitor, shifting focus to video over friends/family content as a better strategy. However, Hegeman acknowledged Facebook's user base still grew despite TikTok's rise. Former TikTok director Eric Morrison testified TikTok “was not necessarily serving that need to connect to people that you already know,” differentiating it from Facebook, according to The Verge.
Day 13: Monday, May 5
Former Facebook product executive Peter Deng testified. He stated that while Facebook anticipated competition from mobile messaging apps in the early 2010s, WhatsApp was not initially seen as a threat, according to The Verge. Deng's 2012 email called mobile messaging apps “the biggest threat to our product.” He differentiated WhatsApp from social media services like iMessage, saying it lacked “expressive messaging.” Deng also worked on Instagram post-acquisition and spoke against former CEO Kevin Systrom's assertion that Instagram could have reached its popularity without Meta, claiming Meta helped with hiring, infrastructure, and growth team staff. However, a chat log between Systrom and Deng showed Instagram's growth resources potentially decreased under Meta.
Days 14 and 15: Tuesday, May 6 and Wednesday, May 7
Meta chief marketing officer Alex Schultz testified, discussing how Meta tracked the rise of mobile messaging apps. WhatsApp chief Will Cathcart and an FTC expert on social media apps also provided testimony during these two days.
Day 16: Thursday, May 8
Instagram CEO Adam Mosseri testified, providing context on user expectations for Instagram. He argued that if Instagram is primarily for connecting with friends and family, it competes differently than entertainment apps like YouTube, according to The Verge. Mosseri asserted that interacting with friends is a key part of Instagram usage, differentiating it from platforms like Twitter, which the FTC argued focuses on news and celebrities rather than friend interactions. He mentioned internal discussions about embedding Twitter-like functionality into Instagram, which eventually led to the creation of Threads. Mosseri stated TikTok became one of Meta's primary competitors. He also discussed Meta's efforts to attract high-profile creators, spending up to $700 million annually, as average users posted less, complicating the argument that Instagram is solely about friends. Later, Meta CMO Alex Schultz testified that Facebook Messenger became more important after the WhatsApp acquisition, partly because Meta needed to “keep things honest so the deal doesn’t fall through and prove there is competition.”
Day 17: Monday, May 12
Meta CMO Alex Schultz continued his testimony, arguing Meta provided Instagram co-founder Kevin Systrom with ample staffing for a growth team, but Systrom was unreceptive until Meta redistributed staff, countering Systrom's claim of sabotage, according to The Verge. Schultz stated that reducing Instagram promotion on Facebook caused a 14% dip in growth rate, but Instagram was still growing and recovered. He argued that time spent, not user numbers, is the primary measure of competition now, challenging the idea that Meta dominates simply due to user count. Schultz also claimed improved content recommendation algorithms have reduced the role of network effects, weakening the monopoly case. NYU innovation law professor Scott Hemphill testified for the FTC, stating users feel “frustration” when they don't see friend/family content, supporting the idea that Meta's platform quality declined post-acquisition despite dominance, according to The Verge. Hemphill also argued that users turning to Instagram Reels during a TikTok outage isn't solid evidence of it being an adequate substitute.
Day 18: Tuesday, May 13
Professor Hemphill resumed his testimony for the FTC. He noted Meta didn't display ads on Instagram Reels (where it competes with TikTok) but continued placing them in other areas where it's stronger, suggesting monopolistic confidence that users wouldn't leave, according to The Verge. He also claimed Meta reduces ad exposure for “needy users” whose engagement drops with ads, only possible with market dominance. Hemphill challenged Meta's view of TikTok as a viable competitor, citing Meta beating its 2024 revenue projection. He argued WhatsApp would likely have integrated personal social networking for monetization if independent, and preventing this justified the high acquisition price. He concluded that independent Instagram and WhatsApp might offer better user experiences (e.g., fewer ads), according to The Verge. Meta attempted to discredit Hemphill, accusing him of bias due to his prior work urging regulators to investigate Meta in 2019, which Meta's lead attorney Mark Hansen argued Hemphill failed to adequately disclose, according to The Verge.
Day 19: Wednesday, May 14
Hemphill continued his testimony, arguing that if Facebook faced meaningful competition, it would offer users a “surplus” beyond free access, according to The Verge. He claimed Meta increases ad volume when improving ad quality rather than benefiting users, unlike in a competitive market. Meta's attorney challenged Hemphill's data presentation and lack of evidence for showing more ads to friend-focused users, presenting a chart showing younger, network-focused users see fewer ads. Hemphill countered that older users, who see more ads, are a larger part of the user base. Hemphill addressed the accusation of bias, stating he disclosed his prior work, wasn't paid for it, and didn't initially view the acquisitions as anticompetitive. Hansen concluded by suggesting Hemphill's view was predetermined. Head of Facebook Tom Alison testified next. The FTC used a Facebook survey showing friend content as a top user pain point to argue Meta knows it's reducing quality. Alison rebutted that users don't know what they want and that giving more friend content led to less Facebook usage, according to The Verge. He noted a “growing” number of users with zero Facebook friends. Alison discussed the dedicated friend-only tab as being for “nostalgia” and preventing friend content from being buried as the app moves towards algorithmic content. The judge questioned if the dedicated tab allows Facebook to reduce friend content elsewhere, but Alison claimed Meta lacks the motive as people are posting less.
Day 20: Thursday, May 15
A major development was Meta's request to dismiss the case, arguing the FTC failed to provide evidence of monopolization through the Instagram and WhatsApp acquisitions. In its motion, the company asserted that competitors like TikTok, YouTube, and iMessage challenge its position. Meta argued that monopolization involves raising prices or degrading services without losing customers, but its apps are free and have improved, with rising engagement and user numbers reflecting competitive behavior. Meta maintained there's no evidence the acquisitions caused harm, only speculation about independent outcomes, which is necessary to prove intent to eliminate rivals. The company also challenged the FTC's narrow “personal social networking services” market definition. Despite the motion, the trial was scheduled to proceed with Meta's defense.
Day 21: Monday, May 19
University of Chicago professor John List testified for Meta. He described an experiment where incentivizing users to reduce Meta time led to equal decreases across all features, suggesting no preference for friend/family content, according to The Verge. List found users most likely diverted to YouTube from Instagram and Google Chrome from Facebook, platforms the FTC doesn't consider competitors. The FTC argued Chrome usage is too broad a metric. List stated the temporary TikTok ban in India in June 2020 caused a 20% rise in Facebook/Instagram usage, showing TikTok as a competitor, according to The Verge. The FTC countered that 58 other apps were also banned, complicating attribution. List's final point was that independent Facebook and Instagram would likely run more ads to offset revenue drops, challenging the FTC's argument that Meta's increased ads post-acquisition without losing users proves monopoly power.
Day 22: Tuesday, May 20
WhatsApp co-founder Brian Acton testified, stating WhatsApp was never intended for ads or to become a social network prior to the acquisition, thus not positioned to compete with Facebook in those areas, according to The Verge. He cited the mantra “no ads, no games, no gimmicks” and exploration of a $1/year subscription. Cross-examination by the FTC revealed WhatsApp had introduced social features like group messaging and profile pictures pre-acquisition. The FTC argued WhatsApp had a viable path to compete, citing consideration of hiring a Facebook employee as CFO and an employee email expressing reservation about pushing WhatsApp where Messenger led post-acquisition. Acton's decision to walk away from ~$800 million in stock rather than compromise the ad-free vision supported the FTC's claim that the acquisition undermined WhatsApp's model and preserved Meta's monopoly. Regarding Instagram, the FTC showed it had 200 million users and launched video/messaging pre-acquisition, suggesting it didn't need Meta's infrastructure, according to The Verge. Meta's production engineering director Nicholas Shortway said he heard Instagram was “chaos” pre-acquisition regarding spam/moderation, though this was based on others' accounts as he joined post-acquisition.
Day 23: Wednesday, May 21
Two major developments occurred: the judge rejected Meta's request to dismiss the case before its defense, and Meta officially concluded its defense, clearing the way for the FTC's rebuttal. Between these, Meta's expert witness, economics professor Dennis Carlton, countered FTC expert Scott Hemphill. Carlton argued the acquisitions “exceeded expectations,” citing Meta lowering WhatsApp's price to free for some and stating Instagram could have sold for 40 times more if its future growth was known, disproving the idea Meta overpaid to neutralize a competitor, according to The Verge. The FTC used a chart showing market improvement under monopoly (like PC sales under Microsoft) to counter, to which Carlton responded hyperbolically about the moon falling, emphasizing his analysis is based on actual events. Carlton challenged the FTC's market definition, presenting evidence platforms compete with short-form video, citing Facebook users navigating to YouTube/TikTok more than Snapchat during an outage and Instagram users spending over half their time on Reels, according to The Verge. He also conducted a regression analysis finding “no systematic positive relationship between ad load and number of friends,” countering the FTC's point that Meta shows more ads to friend-focused users due to network effects.
The Road Ahead
With Meta having concluded its defense and the judge rejecting its bid for early dismissal, the trial is now moving into the rebuttal phase, where the FTC will have an opportunity to counter the arguments and evidence presented by Meta. The core issues remain the definition of the relevant market, whether Instagram and WhatsApp were likely to become significant competitors to Facebook independently, and whether Meta's acquisitions caused harm to competition or consumers. The outcome of this trial could set significant precedents for antitrust enforcement in the technology sector, potentially influencing how major tech companies approach future acquisitions and how regulators assess market power in dynamic digital industries.