Meta has requested a federal court dismiss the Federal Trade Commission's (FTC) antitrust lawsuit against the company. The FTC, Meta asserts, has failed to uncover substantial evidence to support its allegations.
A photograph taken during the World Economic Forum (WEF) annual meeting in Davos on January 18, 2024, shows Meta's logo. This US company owns and operates Facebook, Instagram, Threads, and WhatsApp. (Photo : FABRICE COFFRINI/AFP via Getty Images)
Meta Challenges FTC Lawsuit
Meta contends that the lawsuit lacks merit, citing the FTC's inability to establish the relevant market or demonstrate any adverse effects on consumers resulting from its acquisitions of Instagram and WhatsApp.
The FTC will have the opportunity to respond, leading to further legal proceedings and exchanges of arguments in court filings before the judge decides on how to proceed. Should the court rule in Meta's favor, it could result in the dismissal of the lawsuit.
However, if unresolved factual issues persist, the judge may schedule a trial to address them. This development underscores Meta's ongoing legal battle against allegations of monopolistic behavior and acquisition-related controversies.
In 2021, DC District Court Judge James Boasberg granted the motion of Meta to dismiss the complaint, but he also allowed the FTC to submit an amended complaint, which he deemed sufficiently improved to proceed.
Boasberg acknowledged the revised complaint's enhanced detail and depth, suggesting that the FTC might face formidable hurdles in proving its claims in subsequent proceedings.
In its motion for summary judgment, Meta contests the FTC's market definition, arguing it is too narrowly defined.
FTC characterizes the relevant market as personal social networking services (PSNS), encompassing platforms where users engage with friends and family on personal topics like Facebook, Instagram, Snapchat, and MeWe.
Allegations, Counterarguments
Meta's filing argues that the FTC's initial complaint lacked a plausible claim, leading to its dismissal.
While the amended complaint progressed, it relied on the FTC's commitment to provide evidence supporting a PSNS-relevant antitrust market, Meta's monopoly power, and harm to competition and consumers from Meta's acquisitions of Instagram and WhatsApp.
After extensive discovery, Meta asserts that the FTC cannot substantiate any of the necessary elements of its Section 2 claim. The FTC's relevant market definition excludes TikTok and YouTube, as it argues these platforms serve distinct purposes.
According to the amended complaint, TikTok's usage is not driven by users' connections with friends and family. At the same time, YouTube primarily facilitates the passive consumption of specific media content to a broad audience.
However, Meta disagrees with this assessment. It contends that the court should consider how users interact across platforms like Instagram, TikTok, and YouTube, particularly through features like short-form videos.
Meta argues that the FTC's market classification overlooks content interchangeability among platforms, questioning its approach.
Meta challenges the FTC's ability to assert monopoly power by advocating for a broader market definition. As the legal battle unfolds, the FTC has until May 24 to respond.
