Meta has asked a federal court in the US to dispense with the Federal Trade Commission’s anti-monopoly lawsuit against it, arguing that the FTC has failed to provide evidence to support its claims. The Facebook, Instagram and Whatsapp owner filed a motion for summary judgment, asking the District Court to dismiss the Federal Trade Commission’s (FTC) effort to unwind the decade-plus acquisitions of Instagram and WhatsApp. Meta said, “From the very beginning, the FTC has failed to state a plausible claim, and the agency has done nothing to build its case through the discovery process to prove otherwise.”
It added, “The evidence shows exactly what we said it would: Meta faces fierce competition from a range of platforms – from TikTok and X to YouTube and Snapchat. Further, Meta’s acquisitions of Instagram and WhatsApp, which regulators reviewed and cleared more than a decade ago, have benefited consumers. Through billions of dollars and millions of hours of investment, we’ve made the apps better, more reliable, and more secure.”
The Mark Zuckerberg-led company said the FTC has failed to meet its burden to present evidence establishing a relevant antitrust market and proving that it has included all reasonable substitute services in its market definition.
In a blog post, Jennifer Newstead, Meta’s Chief Legal Officer wrote: “The FTC reviewed both acquisitions years ago and allowed them to close. The decision to revisit done deals is tantamount to announcing that no sale will ever be final. This lawsuit not only sows doubt and uncertainty about the US government’s merger review process and whether acquiring businesses can actually rely on the outcomes of the regulatory review process, but it will also make companies think twice about investing in innovation, since they may be punished if that innovation leads to success.
US antitrust laws have created the competitive landscape within which American companies must compete to thrive, Newstead said: “This competition has driven US companies like Meta to make risky bets, invest, innovate, and deliver value to people, advertisers, and shareholders. Acquisitions of start-ups by large technology companies, like ours of Instagram and WhatsApp, provide essential capital for new ideas and drive the development of new products and technologies. Those deals are risky bets, and many of them aren’t successful in the long run. Companies would be loath to invest in improving purchased assets if there is the possibility that those assets will be unwound (and the progress made undone) through legal challenges years later.”
She added, “Put simply, antitrust laws are supposed to promote competition and protect consumers, not punish companies for innovating to give people greater value and choice. We will continue to vigorously defend our company and the ability of people and businesses to choose the great products we offer.”
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