The US Federal Trade Commission (FTC) on Tuesday said it has filed an appeal against a court decision that dismissed its antitrust lawsuit accusing Meta Platforms of illegally monopolizing the social media market through its acquisitions of Instagram and WhatsApp.
“Our position has not changed. Meta violated our antitrust laws when it acquired Instagram and WhatsApp,” FTC Director of Public Affairs Joe Simonson told reporters. “Consequently, American consumers have suffered from that monopoly.”
The agency submitted a notice of appeal to the US Court of Appeals for the District of Columbia Circuit, initiating a legal process that could ultimately reach the Supreme Court.
The appeal follows a November ruling by US District Judge James Boasberg, who dismissed the FTC’s case, dealing a significant blow to the government’s efforts to rein in the market power of large technology companies. The lawsuit, first filed in 2020, sought to unwind Meta’s purchases of Instagram in 2012 and WhatsApp in 2014, arguing the deals were intended to eliminate future competitors.
In his decision, Boasberg concluded that Meta does not hold monopoly power, citing substantial competition from platforms such as TikTok and YouTube. He noted that Facebook and Instagram have evolved into services that primarily feature algorithm-driven short-form videos, similar in format to TikTok.
“Meta holds no monopoly in the relevant market,” the judge wrote, pointing to evidence that American users spend just 17 percent of their time on Facebook viewing content from friends, and only 7 percent on Instagram, with the majority of engagement now focused on “Reels” — short videos often posted by accounts users do not follow.
A senior FTC official sharply criticized the ruling, arguing that the court erred by focusing solely on Meta’s market position at the time of trial rather than examining its conduct over a longer period. The official said the judge took “a very odd path” that allowed Meta’s alleged misconduct to be overlooked, speaking on condition of anonymity due to restrictions on public comment.
The decision represents another setback for US antitrust regulators pursuing aggressive cases against Big Tech firms, efforts that have produced mixed results in recent years. The federal government has brought five major antitrust cases against technology giants, including two against Google and separate lawsuits targeting Apple and Amazon.
In a related development, a federal judge in September rejected a government attempt to break up Google, ruling that the company did not operate as an illegal monopoly. Google appealed that decision last week, underscoring the increasingly complex and uncertain legal landscape facing US antitrust enforcement.