US’s Antitrust Case Against Meta

In recent years, Big Tech companies have come under intense global scrutiny over their growing dominance, control over data, and impact on competition. Among them, Meta is facing a serious legal challenge in the U.S. The U.S. Federal Trade Commission (FTC) has accused Meta of engaging in anti-competitive practices to maintain its monopoly in what it calls the Personal Social Networking (PSN) market. This is a test of how democracies regulate monopolies in the digital age.

What is the Case About (Monopoly)?

• The FTC argues that Meta followed a deliberate strategy of acquiring potential rivals (WhatsApp, Instagram) to suppress competition, rather than innovate or compete fairly.
• Meta also imposed restrictive terms on third-party developers to prevent them from building competing services.
• These moves, the FTC claims, were not aimed at consumer benefit but at consolidating control over the market, making it difficult for any meaningful rival to emerge.
• Meta says:
  • It is not a monopoly, because users spend time across various platforms, not just Meta’s.
  • The FTC’s definition excludes major rivals like TikTok, which is extremely popular among young users.
  • Instagram and WhatsApp became successful because Meta invested billions in them — not because of unfair practices.
  • The acquisitions were approved by regulators when they happened, over a decade ago.
• If the FTC wins the case, Meta could be forced to sell off Instagram and WhatsApp, a dramatic step that would reshape the digital landscape

What is the ‘PSN Market’?

• The FTC defines Personal Social Networking (PSN) platforms as those that allow people to maintain personal profiles, connect with friends, and share content. Facebook and Instagram are seen as dominant players here.
• Meta challenges this narrow definition. It argues that it competes with a wide range of apps — including TikTok, YouTube, Snapchat, X (formerly Twitter), and messaging apps — that also serve social and content-sharing functions.

Why is this case so Important?

• Rewriting Modern Antitrust Law: Traditional antitrust laws focused on consumer pricing. But digital platforms offer free services — and gain power through data control, network effects, and digital influence. This case could help redefine how monopoly power is understood in the digital age.
• Implications for Big Tech: If the FTC wins, it would send a global message that even the largest tech companies can be broken up. It could affect other giants like Google, Amazon, Apple, and even foreign platforms.
• Global Regulatory Trends: Across the world, regulators are becoming more aggressive:
  • EU’s Digital Markets Act targets similar monopolistic behavior.
  • India’s Competition Commission (CCI) is probing Google and Apple.
  • Countries like Australia and the UK are also designing stronger digital competition rules.
• This trial fits into a larger global push to regulate Big Tech.
• Political and Geopolitical Factors: The case has also attracted attention because of Zuckerberg’s recent closeness to former President Trump. There are reports that he met Trump privately before the trial. However, political lobbying has not stopped the legal proceedings.