FTC says it will appeal Meta antitrust decision

The Federal Trade Commission announced Tuesday it will challenge a recent court decision that sided with Meta Platforms in a high-profile antitrust lawsuit, setting the stage for a new chapter in the government’s efforts to rein in Big Tech.

The FTC’s appeal seeks to overturn a November ruling that rejected claims that Meta, formerly known as Facebook, maintains an illegal monopoly in social networking. According to the commission, Meta has spent more than a decade engaging in anticompetitive behavior, primarily through its strategic acquisitions of Instagram and WhatsApp—platforms the FTC characterized as “significant competitive threats.”

“We remain committed to holding Meta accountable for what we believe are clear violations of antitrust law,” said an FTC spokesperson. “The acquisitions of Instagram and WhatsApp were calculated moves to eliminate emerging competitors and cement Meta’s dominance in social networking.”

The November decision by U.S. District Judge James Boasberg represented a major victory for Meta, effectively removing the threat of a court-ordered breakup that would have forced the company to divest Instagram and WhatsApp—two platforms that have become central to Meta’s business model and revenue stream.

Judge Boasberg’s ruling came after a months-long trial that concluded in May, where the FTC argued that Meta’s acquisitions were part of a deliberate strategy to maintain market dominance. The judge ultimately found the FTC failed to prove Meta holds monopoly power in the personal social networking market.

In response to the FTC’s announcement of an appeal, Meta reaffirmed its position that the court made the correct decision. “The court’s ruling recognizes the fierce competition we face in the marketplace,” Meta said in a statement. “We will remain focused on innovating and investing in America while this appeal process unfolds.”

The legal battle highlights the divergent fortunes of major tech companies facing antitrust scrutiny. While Meta secured a significant win, Google has suffered consecutive defeats in separate antitrust cases. Courts have recently branded Google an illegal monopolist in both online search and digital advertising, decisions that represent substantial regulatory setbacks for the tech industry.

The contrast between these outcomes reflects the complexity of applying traditional antitrust frameworks to digital platforms. Meta successfully argued that it competes with a wide range of services beyond traditional social networks, including entertainment platforms like TikTok and YouTube.

Market analysts note that the FTC faces significant challenges in its appeal. “The burden is high to overturn a factual determination made after a full trial,” said Eleanor Fox, an antitrust law expert at New York University. “However, the FTC clearly believes the judge misapplied the law regarding what constitutes monopoly power in digital markets.”

The case is part of a broader regulatory push against major technology companies that began during the Trump administration and has continued under President Biden. FTC Chair Lina Khan, a noted critic of Big Tech concentration, has made challenging digital platform power a cornerstone of her tenure.

For Meta, while the appeal extends the uncertainty surrounding its business model, the company continues to push forward with its strategic pivot toward the metaverse and artificial intelligence. Investors have largely shrugged off regulatory concerns, with Meta’s stock performance remaining strong throughout the legal proceedings.

The timeline for the appeal remains uncertain, but legal experts suggest the process could extend well into 2025 before a final resolution is reached. The outcome could have lasting implications for how antitrust laws are applied to digital platforms and may influence pending legislation aimed at updating competition policy for the digital age.

Whatever the eventual result, the case underscores the ongoing tension between innovation-driven tech giants and regulators concerned about market concentration and competitive dynamics in the digital economy.