Policy Alert: Meta Antitrust Trial Begins

Action: The trial in the Federal Trade Commission’s (FTC) case against Meta, originally filed in 2020, has begun. The FTC alleges that the company has engaged in a systematic strategy to restrict competition and develop a “social networking monopoly” that included purchasing competitors Instagram and WhatsApp. The FTC had also alleged that Meta restricted third-party developers from accessing its platform, but the court dismissed that claim in November 2024. Judge James Boasberg ruled that the FTC had not presented sufficient evidence in its first suit to proceed. The FTC refiled the case in 2021, and it was allowed to proceed in 2022.

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The FTC and Meta have reportedly been engaging in negotiations to settle the case. According to reports, the FTC had initially proposed that Meta pay a $30 billion penalty to settle the case. Meta reportedly countered with a $450 million offer, anticipating support from the Administration, which has signaled a less aggressive stance on antitrust enforcement. However, the FTC rejected the offer, instead demanding $18 billion and a consent decree. In response, Meta raised its offer to $1 billion, which the FTC also declined.
Meta denies the allegations, arguing that its acquisitions were approved by regulators at the time and have benefited consumers. The FTC is seeking, among other remedies, a possible breakup of Meta’s assets, including forcing the company to divest Instagram and WhatsApp—an outcome that could reshape the tech industry.
The FTC under its previous chair, Lina Khan, had taken an aggressive antitrust posture, pursuing cases against tech giants Microsoft, Amazon, and others. There had been uncertainty about whether the agency’s posture would shift under its new chair, Andrew Ferguson. However, he signaled that the FTC would continue pursuing aggressive merger enforcement.
In rejecting the first case in 2021, Judge Boasberg cited what he described as the FTC’s “inability to offer any indication of the metric(s) or method(s) it used to calculate Facebook’s market share” -- a critical determination in monopolization cases. In scheduling the case for trial last November, he noted that the FTC “faces hard questions about whether its claims can hold up in the crucible of trial” and noting that its “positions at times strain the country’s creaking antitrust precedents to their limits.”
The FTC also has pending cases against Google, Apple, and Amazon. Analysts suggest that the outcomes of these cases will have a profound impact on the tech sector, potentially reshaping how dominant platforms operate, acquire competitors, and interact with consumers and third-party businesses. Some observers have drawn comparisons to landmark antitrust actions such as the breakup of the Bell Telephone monopoly in the 1980s and the Justice Department’s case against Microsoft in the early 2000s, which curtailed the company’s ability to bundle software as an integral part of Windows and helped open the door for new competitors.

Policy Alert: Meta Antitrust Trial Begins

April 17, 2025

Key Insights

The FTC and Meta have reportedly been engaging in negotiations to settle the case. According to reports, the FTC had initially proposed that Meta pay a $30 billion penalty to settle the case. Meta reportedly countered with a $450 million offer, anticipating support from the Administration, which has signaled a less aggressive stance on antitrust enforcement. However, the FTC rejected the offer, instead demanding $18 billion and a consent decree. In response, Meta raised its offer to $1 billion, which the FTC also declined.

Meta denies the allegations, arguing that its acquisitions were approved by regulators at the time and have benefited consumers. The FTC is seeking, among other remedies, a possible breakup of Meta’s assets, including forcing the company to divest Instagram and WhatsApp—an outcome that could reshape the tech industry.

The FTC under its previous chair, Lina Khan, had taken an aggressive antitrust posture, pursuing cases against tech giants Microsoft, Amazon, and others. There had been uncertainty about whether the agency’s posture would shift under its new chair, Andrew Ferguson. However, he signaled that the FTC would continue pursuing aggressive merger enforcement.

In rejecting the first case in 2021, Judge Boasberg cited what he described as the FTC’s “inability to offer any indication of the metric(s) or method(s) it used to calculate Facebook’s market share” -- a critical determination in monopolization cases. In scheduling the case for trial last November, he noted that the FTC “faces hard questions about whether its claims can hold up in the crucible of trial” and noting that its “positions at times strain the country’s creaking antitrust precedents to their limits.”

The FTC also has pending cases against Google, Apple, and Amazon. Analysts suggest that the outcomes of these cases will have a profound impact on the tech sector, potentially reshaping how dominant platforms operate, acquire competitors, and interact with consumers and third-party businesses. Some observers have drawn comparisons to landmark antitrust actions such as the breakup of the Bell Telephone monopoly in the 1980s and the Justice Department’s case against Microsoft in the early 2000s, which curtailed the company’s ability to bundle software as an integral part of Windows and helped open the door for new competitors.

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