FTC Launches Second Major Assault to Shatter Meta’s Digital Monopoly

The Federal Trade Commission just reloaded its antitrust arsenal—and this time, they're aiming straight at Meta's empire.

Regulators Double Down

Forget subtle warnings. The FTC's latest legal salvo signals a full-scale regulatory war against what it calls Meta's 'entrenched dominance' over social networking and virtual spaces. This isn't just a lawsuit; it's a structural blueprint for breaking a tech giant into pieces.

Monopoly in the Metaverse?

At the heart of the fight: control over future digital landscapes. The FTC argues Meta's acquisitions and platform policies don't just dominate current social media—they're designed to monopolize the next evolution of the internet itself. It's an aggressive preemptive strike against market control that hasn't fully materialized yet.

Legal Ground Shifts

Previous antitrust battles focused on consumer prices. This new front targets something more abstract: competitive possibility. The FTC's argument hinges on proving that Meta's actions systematically eliminate potential rivals before they can become threats—a much harder case to make, but potentially far more devastating if won.

The precedent here could reshape every big tech merger for decades. Or it could become another expensive regulatory footnote—either way, lawyers are the only guaranteed winners. Typical government efficiency: spending millions to fix a monopoly problem they helped create by approving all those acquisitions in the first place.

FTC failed to prove monopoly power before

In his November decision, Boasberg wrote that the FTC had a hard time defining Meta’s product market because “apps surge and recede, chase one craze and MOVE on from others, and add new features with each passing year.” He said the agency didn’t prove Meta holds monopoly power now.

Meta Chief Legal Officer Jen Newstead was happy with the decision, saying it “recognizes that Meta faces fierce competition.” She called the company’s products beneficial and said they show American innovation and economic growth.

The FTC’s original case said Meta, which used to be called Facebook Inc., bought the two companies in 2012 and 2014 so it wouldn’t have to compete with them. The agency said these purchases strengthened Meta’s monopoly in social networking for friends and family connections.

Meta argued its competitors go way beyond traditional friends and family sharing. The company includes short-form video, commerce and private messaging. Meta brought in people from Reddit Inc., X, TikTok and Pinterest Inc. to talk about how their platforms compete for user time and attention, which means advertising money.

Boasberg said TikTok, YouTube identical to Meta apps

Boasberg didn’t buy the FTC’s claim that Meta’s Facebook and Instagram are mainly for personal social networking while TikTok and YouTube are video entertainment apps. He wrote that the four platforms have “evolved to have nearly identical” features, and evidence “resoundingly shows” users see TikTok and YouTube as alternatives to Meta’s apps.

This case is one of five major antitrust lawsuits filed by the FTC or Justice Department against the world’s biggest technology platforms. Two federal judges already ruled that Alphabet Inc.’s Google illegally monopolized online search and advertising markets, while cases against Amazon.com Inc. and Apple Inc. are still pending.

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