Meta’s empire is under threat as U.S. regulators accuse the company of monopolizing social media. With a trial underway, this could be the beginning of a historic crackdown that forces Instagram and WhatsApp to split off.
BY PC Bureau
n a high-stakes showdown that could reshape the future of Big Tech, Meta CEO Mark Zuckerberg recently attempted to head off a landmark antitrust trial by offering a $450 million settlement to the U.S. Federal Trade Commission (FTC). The proposal, made personally by Zuckerberg to FTC Chairman Andrew Ferguson in a phone call in late March, was quickly dismissed as inadequate and insincere, according to a detailed report by The Wall Street Journal.
The FTC is pursuing a $30 billion penalty, alongside a sweeping consent decree, in a case that seeks to dismantle Meta’s most powerful assets—Instagram and WhatsApp. The agency argues that Meta’s decade-old acquisitions were part of a calculated strategy to eliminate competition and solidify its dominance in the social media market.
The trial, which began on April 14, could result in a forced divestiture of Instagram and WhatsApp—two platforms that have become central pillars of Meta’s vast digital empire.
Zuckerberg’s direct appeal to Ferguson was a rare personal intervention. The Meta CEO reportedly hoped to avert what could become one of the most consequential antitrust cases in U.S. history. However, the timing and scale of the offer worked against him.
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“The company’s $450 million settlement offer was delusional,” former FTC Chair Lina Khan was quoted as saying in WSJ. “Mark bought his way out of competing, so I’m not surprised he thinks he can buy his way out of law enforcement, too.”
HOORAY HOORAY HOORAY
US Government face-off with Facebook.“If the judge rules in favor of the government, Meta could be forced to break itself up by selling Instagram and WhatsApp. Other tech giants may also come under increased scrutiny as pressure on Big Tech intensifies,… pic.twitter.com/5AcnXbQcEw
— Donald (@dbaDonald) April 15, 2025
Ferguson, now leading the FTC’s aggressive push against tech monopolies, refused to entertain the offer, viewing it as far below the necessary threshold. According to sources familiar with the conversation, he found Meta’s proposal “not credible”—a stark reflection of how wide the gap remains between regulators and Silicon Valley.
The Heart of the Case: Buy or Compete?
At the core of the FTC’s case is the contention that Meta—formerly Facebook—used its immense financial resources to “neutralize” potential rivals rather than innovate. In 2012, it acquired Instagram for $1 billion. Two years later, it bought WhatsApp for a staggering $19 billion.
Both deals were approved at the time, but critics argue that regulators underestimated the competitive threat these platforms posed. The FTC now claims these acquisitions were part of a deliberate effort to eliminate emerging threats and preserve Meta’s monopoly over social networking.
Evidence presented in court includes internal documents and emails that reveal Zuckerberg’s strategic thinking. One email from 2008, entered as evidence, reads: “It is better to buy than compete.”
On the stand, Zuckerberg was asked whether he regretted not pushing Facebook’s own camera app harder before buying Instagram. “I guess so, yeah,” he said. “A billion dollars is very expensive.”
The FTC views such statements as proof of intent. Regulators argue that Zuckerberg’s empire was built not only on technological innovation but also on a pattern of anti-competitive acquisitions meant to dominate user attention and ad revenue.
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Meta’s Defense: “This Is Not 2012”
Meta has denied the allegations, arguing that it operates in a highly competitive digital ecosystem. Company lawyers claim the FTC’s framing of the social media market is outdated and narrow, ignoring the emergence of formidable rivals like TikTok, YouTube, X (formerly Twitter), and LinkedIn.
In a statement to The Wall Street Journal, Meta spokesperson Dani Lever said: “We haven’t been shy about explaining why it doesn’t make sense for the FTC to bring a case to trial that requires it to prove something every 17-year-old in America knows is absurd—that Instagram doesn’t compete with TikTok.”
Meta argues that its acquisitions were not only legal at the time but beneficial to consumers, creators, and advertisers. “We gave them better tools, security, and scale,” said one executive familiar with the company’s legal strategy.
⚖️ Meta on Trial!
FTC takes on Facebook-parent Meta, claiming its Instagram & WhatsApp buys crushed competition.
🚫 No real alternatives left for users, says FTC.
💥 A breakup could be on the table.
📉 Billions in ad revenue at stake.
Meanwhile, Meta cozies up to Trump — but… pic.twitter.com/gGoGWQnlkj— Instant News 247 (@instant_news247) April 14, 2025
Still, the company is bracing for a lengthy legal battle. If the court rules in the FTC’s favor, Meta could be forced to break up, a move that would ripple across the tech industry and reshape how mergers are viewed in the digital age.
White House Backchanneling and Political Maneuvering
In the weeks before the trial began, Zuckerberg also attempted to build political capital. According to reports, he made repeated efforts to lobby former President Donald Trump and his senior aides.
Zuckerberg and top Meta executives reportedly made several visits to the White House in early 2025, meeting with officials including Trump’s influential chief of staff, Susie Wiles. The goal: to persuade the administration to either pressure the FTC to settle or to publicly criticize the case.
“We regularly meet with policymakers to discuss issues impacting competitiveness, national security, and economic growth,” Meta told Reuters when asked about the meetings.
Trump, who has had a complicated relationship with social media platforms, appeared initially receptive. But after an April 8 meeting with Ferguson and senior FTC lawyers, the former president opted not to interfere. According to WSJ, Ferguson made a compelling case that swayed Trump, who had previously accused social media companies of censorship and bias.
Despite efforts to build goodwill—Zuckerberg had donated $1 million to Trump’s inaugural fund and settled a $25 million lawsuit tied to a political advocacy group—many Trump allies remain deeply skeptical of Meta’s influence.
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Ferguson, speaking on Fox Business on the trial’s opening day, said Meta’s acquisitions had given it “a tremendous amount of power—power we all saw on full display in 2020.” He added, “This case is about reining in that power and ensuring a fair playing field.”
A Glimpse of Doubt: Instagram Spinoff Memo Surfaces
During testimony, an internal 2018 memo revealed that Zuckerberg himself had considered spinning off Instagram due to mounting regulatory pressure.
“I wonder if we should consider the extreme step of spinning Instagram out as a separate company,” he wrote. The memo, presented by the FTC as evidence, suggests that Meta’s leadership was aware of potential antitrust fallout. Zuckerberg noted that the “next Democratic president” could force a breakup, and suggested the company could get ahead of it.
Ultimately, Meta decided against the spinoff, opting instead to tightly integrate its apps—Facebook, Messenger, Instagram, and WhatsApp—both on the back end and in user experience.
The Meta case is just one front in the Biden-era FTC’s broader war against Silicon Valley consolidation. Similar suits are pending against Amazon, Google, and Apple, targeting everything from app store dominance to search advertising practices.
The FTC’s suit against Meta was first filed in December 2020, during Trump’s first term. A federal judge initially dismissed the case for lack of evidence, but under Lina Khan’s leadership, the agency refiled a stronger version with newly uncovered internal documents and revised arguments.
What’s at stake now is more than Meta’s market share. This case could redefine how antitrust law is applied to the digital economy—and whether past mergers, even ones approved years ago, can be unwound if regulators determine they harmed competition.
The trial is expected to continue for several weeks, with testimony from current and former Meta executives, antitrust experts, and economic analysts. A verdict is not expected before mid-summer, but regardless of the outcome, the case has already sent a chilling message through Silicon Valley.
If the court rules in favor of the FTC, Meta could be forced to divest Instagram and WhatsApp—an unprecedented breakup of a tech giant that would signal a new era of enforcement.
But even if Meta prevails, the trial may fuel momentum for legislative reform aimed at reining in tech monopolies and rewriting the rules of competition in the 21st century.
