Washington, D.C. — April 14, 2025 — Meta Platforms Inc., the parent company of Facebook, is heading into a high-stakes antitrust trial this week that could fundamentally reshape its business—and potentially lead to the breakup of one of the most powerful tech companies in the world.
The U.S. Federal Trade Commission (FTC) will argue in court that Meta’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were not merely strategic investments but part of a calculated move to eliminate rising competitors. By absorbing these growing platforms, the FTC alleges, Meta built an illegal monopoly over personal social networking and stifled innovation in the industry.
The trial begins Monday in a federal court in Washington, D.C., and is expected to extend through July. At its core, the case aims to determine whether Meta’s dominance constitutes a violation of U.S. antitrust laws and whether its acquisition practices unfairly harmed competition and consumers. If the FTC prevails, it could pursue a court-ordered divestiture—forcing Meta to unwind the deals and potentially sell off Instagram and WhatsApp.
An FTC win would pose an existential threat to Meta’s revenue model. According to advertising research firm Emarketer, Instagram is projected to generate over $37 billion in U.S. ad revenue this year—more than half of Meta’s total U.S. advertising income. It also yields the highest revenue per user across all of Meta’s platforms, outperforming even Facebook.
While WhatsApp contributes less revenue at present, it boasts the largest daily user base of any Meta platform and is central to the company’s strategy for future growth through business messaging and AI-powered tools like chatbots.
Meta CEO Mark Zuckerberg is expected to testify during the trial, facing questions over internal emails that reportedly describe acquiring Instagram as a way to “neutralize a potential competitor” and his concerns that WhatsApp could evolve into a competing social network.
Meta has countered these claims by asserting that its acquisitions were lawful and have benefited users and developers, expanding functionality and reliability while facing strong competition from platforms like TikTok, YouTube, and Apple’s messaging services.
Meta also argues that market dynamics have changed drastically since the acquisitions, and that competition in social media is more robust than ever, pointing to a spike in user traffic on Facebook and Instagram during TikTok’s recent temporary suspension in the U.S.
The timing of the trial is also politically charged. The FTC case was originally filed in 2020 under President Donald Trump’s first administration and is now proceeding during his second term. With President Trump’s administration simultaneously working to ban or limit Chinese-owned TikTok, critics, including Meta’s legal team, argue that breaking up an American company like Meta contradicts national tech policy.
Meta’s Chief Legal Officer, Jennifer Newstead, called the lawsuit “absurd” in a blog post on Sunday, adding, “The FTC is trying to dismantle a great American company at the same time the administration is trying to save Chinese-owned TikTok.”
In contrast, FTC spokesperson Joe Simonson stated, “The Trump-Vance FTC could not be more ready for this trial. We are blessed with some of the most hardworking and intelligent lawyers in the country.”
This is not the only major antitrust action involving U.S. tech giants. The FTC and the Department of Justice (DOJ) are currently pursuing five major lawsuits across the industry. Google faces two DOJ cases, including one seeking the breakup of its Chrome browser business. Apple and Amazon are also under investigation.
U.S. District Judge James Boasberg, who is presiding over Meta’s case, has acknowledged that while the FTC presented enough evidence to proceed to trial, the agency “faces hard questions about whether its claims can hold up in the crucible of trial.”
If the FTC wins the initial phase, a second trial would be required to determine whether forcing Meta to divest Instagram or WhatsApp would actually restore meaningful competition in the market.
For Meta, the stakes couldn’t be higher. A forced breakup would represent not only a devastating blow to its revenue but a historic turning point in the regulation of digital monopolies. For regulators, the trial will test whether existing antitrust tools can effectively rein in Big Tech in a rapidly evolving digital marketplace.
As proceedings begin, the outcome of this landmark case will be closely watched by investors, tech executives, regulators, and consumers around the globe.
