THERE IS (STILL) NO SOCIAL MEDIA MONOPOLY

WASHINGTON DC – Meta stands down the U.S. Federal Trade Commission (FTC) today in the most critical antitrust trial in the history of Mark Zuckerberg’s powerhouse social media company. On the line is Meta’s ownership of Instagram and WhatsApp as part of the Facebook ecosystem. Launched 6 years ago by the FTC in the final weeks of President Trump’s first term, the suit alleges Meta broke competition laws by acquiring Instagram and WhatsApp and oversee a monopoly in social media. 

Stefano Kent del Centro di scelta dei consumatori, an international consumer advocacy group, responded to the start of Meta’s trial,

“There have been periods since the rise of social media where the industry felt stagnant to consumers and the options for where to spend time online seemed narrow, but we can all see clearly that this is not presently the case. The FTC must prove the existence of a monopoly today, not in 2012 or 2014 at the dawn of the industry. Consumers have a lot of choices for how to spend time on social media.” 

What’s been put before U.S. District Judge James Boasberg by the FTC is a social media marketplace remedy that would direct Meta to sell Instagram and WhatsApp, supposedly to benefit small startups looking to enter the market. 

“The FTC will try to argue malicious intent by Meta in their early acquisition strategies, but that will be a tough sell when everyone in the courtroom knows from lived experience that Meta’s apps are working daily to keep up with YouTube, TikTok, Snapchat, and X,” Kent continued. 

President Trump could call off the trial and settle with Meta, but no such effort has been made by the administration. FTC Chair Andrew Ferguson indicated he would yield if directed, but that the FTC is ready to battle this one out. 

Kent concluded:

“America needs an effective FTC that watches out for monopolistic practices harming consumers, and this just isn’t it. Keep in mind that Meta rolled out a competitor to X called ‘Threads’, which was backed by the synchronized power of Facebook and Instagram, and still, it didn’t find market footing. Facebook has even changed its content moderation policies to follow X’s lead, and mimicked the short-form vertical content of TikTok and YouTube Shorts.

This is a highly dynamic industry that the FTC claims is captured. The rapid sophistication of AI tools is opening up a new frontier in social media, and it would be a wrongheaded market intervention for the government to cut off Meta at the knees at the start of a new race.” 

###

Il Consumer Choice Center è un gruppo di difesa dei consumatori indipendente e non partigiano che sostiene i vantaggi della libertà di scelta, dell'innovazione e dell'abbondanza nella vita quotidiana dei consumatori in oltre 100 paesi. Monitoriamo attentamente le tendenze normative a Washington, Bruxelles, Ottawa, Brasilia, Londra e Ginevra. www.consumerchoicecenter.org