Meta wins major antitrust case as judge rules it is not a social-networking monopoly

Meta scored a crucial courtroom victory on Tuesday after a U.S. federal judge ruled that the company does not currently hold a monopoly in social networking — a decision that shields the tech giant from a potential breakup of Instagram and WhatsApp.

U.S. District Judge James Boasberg delivered the ruling months after the landmark antitrust trial concluded in May. The verdict contrasts sharply with recent high-profile decisions against Google, which was found to be an illegal monopoly in search and digital advertising.

Boasberg wrote that the Federal Trade Commission failed to prove Meta still possesses monopoly power in today’s market. The agency, he said, continued to rely on arguments rooted in Meta’s past rivals and old market conditions. “Whether or not Meta enjoyed monopoly power in the past… the agency must show that it continues to hold such power now,” he noted.

The FTC argued that Meta maintained dominance by following Mark Zuckerberg’s 2008 mindset that it is “better to buy than compete,” pointing to Meta’s acquisitions of Instagram and WhatsApp. But Zuckerberg, testifying in April, pushed back, saying early emails cited by the FTC did not capture his full rationale for the purchases.

Boasberg emphasized that the case hinged not on decade-old acquisitions—approved at the time by regulators—but on whether Meta is violating antitrust laws today. Prosecutors could only prevail by proving a “current or imminent” violation, he wrote.

The ruling highlighted the dramatic shifts in the social media landscape since the FTC filed its lawsuit in 2020. Earlier versions of the case didn’t even mention TikTok, which Boasberg said now “holds center stage as Meta’s fiercest rival.” He added that distinctions once made between “social networking” and “social media” no longer describe a rapidly blending market.

Meta welcomed the decision, saying it confirms the company faces strong competition. Chief legal officer Jennifer Newstead said Meta’s products “exemplify American innovation” and that the company looks forward to continued investment in the U.S.

Analysts said the win was expected given Meta’s aggressive efforts to keep up with TikTok, though regulatory challenges remain. Minda Smiley of Emarketer noted that major U.S. trials over social media’s impact on children are looming next year.

Meta’s acquisitions of Instagram in 2012 for $1 billion and WhatsApp in 2014 for $22 billion played a key role in its transition from desktop-focused services to mobile dominance and helped it stay relevant among younger users. The FTC, however, has argued for a narrow market definition that excludes competitors such as TikTok, YouTube and Apple’s messaging services.

Investors appeared unfazed by the ruling. Meta’s shares edged down $1.52 to $600.49 on Tuesday afternoon, in line with overall market movements.