When the FTC first launched its case against Meta in 2020,
it claimed the company had engaged in anti-competitive practices by acquiring
Instagram and WhatsApp to eliminate potential rivals. The FTC argued that these
acquisitions were part of Meta's strategy to eliminate threats to its monopoly
in the social media market. However, the court dismissed the initial case as
the FTC failed to prove Meta had monopoly power.
In 2020, the social climate and landscape was much different
than it is today. In the past four years, new players have emerged and gained
significant popularity at a rapid rate. One player in particular that has
bolstered Meta's defense is TikTok.
Since launching in 2016, TikTok has grown exponentially and
now poses a serious threat to Meta's platforms. TikTok shows that even the
largest social media companies are not invulnerable, and that new digital
services can disrupt the market.
This is a key point Meta has focused on in its motion to
dismiss the FTC's refiled case from 2022. Meta argues the FTC still does not
properly define the relevant market or include all reasonable competitors.
In its market definition, the FTC only considers four
companies - Facebook, Instagram, Snapchat, and MeWe. This ignores the
prevalence of users engaging with other services like YouTube, Twitter, Twitch,
Pinterest, Reddit and more. It also does not account for the rise of TikTok and
its hundreds of millions of active users in North America alone.
Meta claims both Instagram and WhatsApp have greatly
benefited from the resources it provided after acquisition. Through Meta's
investments, these platforms grew into leading services utilized by billions
worldwide. Instagram now generates a significant portion of Meta's annual
revenue, showing the acquisition has paid off tremendously for both parties.
WhatsApp also continues developing new business features and remains the most
used messaging platform globally.
Since the case first emerged, Meta took additional steps to
defend its position. In recent years it began merging the technical
infrastructure behind WhatsApp, Instagram and other messaging services. This
makes the individual apps reliant on shared back-end systems.
Some viewed this as a strategic move, as interconnectivity
between the platforms could strengthen Meta's hand against any potential forced
divestment orders. With services literally hardwired together, it may not be
possible to fully separate the companies as the FTC wants.
The court will now decide on Meta's motion for summary
judgment to dismiss the case. A denial would see the lawsuit continue forward,
while a dismissal would remove the threat of a potential breakup. For social
media marketers, it serves as a reminder that the landscape is ever-evolving.
Regularly reviewing trends and metrics using insights from
an SMM panel is important to stay ahead of changes. A comprehensive SMM service
like Great SMM offers detailed social reports and analytics to optimize
strategies for all major platforms. Our panel of experts analyze engagement
patterns and test new features, helping clients maximize results.
As the case progresses, marketers should keep an eye on
developments. A breakup order could significantly impact the ecosystem if
Instagram and WhatsApp were spun off into separate companies. Separating
technical systems after years of integration would also prove incredibly
complex. For now, Meta makes compelling arguments that it does not hold an
illegal monopoly.
While the court's decision is pending, social marketers can
leverage Great SMM's expertise and tools to navigate uncertainty and test new
approaches across different scenarios. Our SMM panel has deep experience
adapting to shifts in the social sphere.
