A decade ago, Mark Zuckerberg acquired photo sharing app Instagram and instant messaging app Whatsapp for a whopping sum of money. It was the most talked about acquisition deal as it was seen as an attempt by Facebook - the company that would be renamed Meta in 2021- as a way to kill off potential competition.
But now, an antitrust case filed by US Federal Trade Commission or FTC that starts its blockbuster trial from Monday (Apr 14), might lead to Meta selling Instagram and WhatsApp if FTC wins.
But the trial could last for weeks, and Meta is determined to push back against having to divest WhatsApp and Instagram.
FTC is a powerful, independent agency whose primary responsibility is enforcing antitrust laws and consumer protection. In its court filings, the FTC alleged that the acquisitions of Instagram and WhatsApp violated the competition laws of the US. It said that Meta is monopolising the personal social networking market.
After their acquisition by Facebook, WhatsApp and Instagram became the social media giant's crown jewels, helping Meta evolve into one of the Big Tech giants.
In spite of the rise of rivals, Instagram is still dominant in the photo and video sharing space, while WhatsApp is practically unrivalled on the personal messaging front.
A court in Washington will hear FTC's case, in which the top executives of Meta's rivals Tiktok, Snap Inc, and YouTube are expected to testify. For Meta, former Chief Operating Officer Sheryl Sandberg, Instagram cofounder Kevin Systrom and other former and current officials will take the stand besides Zuckerberg.
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