Judge Rules Meta Is Not A Monopoly, Rejecting FTC Bid To Break Up Instagram And WhatsApp

(RTTNews) - A federal judge handed Meta (META) a major legal victory, ruling that the company is not an illegal social-networking monopoly and rejecting the Federal Trade Commission - FTC's push to force the company to divest Instagram and WhatsApp.

The FTC had argued that Meta bought Instagram and WhatsApp to neutralize emerging competition and maintain dominance. During the seven-week trial, executives, including CEO Mark Zuckerberg, testified that Meta faces intense pressure from platforms like TikTok and YouTube. Judge James Boasberg agreed, writing that Meta "holds no monopoly," citing shifting market dynamics and the rise of AI-driven content that undercut the FTC's claims.

The agency said it was disappointed and is weighing its next steps. A breakup would have been a major blow to Meta, which depends heavily on Instagram's advertising revenue and WhatsApp's global user base. Zuckerberg's testimony also acknowledged Facebook's declining relevance even as Meta's apps collectively reach 3.3 billion daily users.

Meta welcomed the ruling, saying it confirms the company faces strong competition and continues to fuel innovation and economic growth.

The decision arrives as regulators intensify scrutiny of Big Tech. Google was recently found to be a monopoly in two cases involving search and online ads, while Apple and Amazon are still battling antitrust lawsuits.

Boasberg noted that Meta's share of overall social-media usage is "modest" and falling, even if YouTube is excluded from the market definition. He emphasized the impact of TikTok, which entered the market just seven years ago and has since become Meta's most aggressive rival.

META currently trades at $587.34, or 1.73% lower on the NasdaqGS.