The Ruling
Meta won its antitrust case against the FTC Tuesday. Judge James Boasberg ruled the agency failed to prove Meta holds a monopoly in social networking.
"The agency must show that it continues to hold such power now," Boasberg wrote. "The FTC has not done so."
The case started five years ago. It focused on Meta's purchases of Instagram and WhatsApp.
What the FTC Wanted
The FTC said Meta shouldn't have been allowed to buy Instagram for $1 billion in 2012. It also questioned the $19 billion WhatsApp purchase in 2014.
The agency wanted those companies separated from Meta.
The Problem
The judge said the FTC needed to prove Meta is breaking antitrust law today. Not years ago when social media worked differently.
Boasberg sided with Meta's argument. The company now faces real competition from TikTok and YouTube.
The Market Shift
Social media has changed dramatically. Users have moved heavily toward video content.
"People treat TikTok and YouTube as substitutes for Facebook and Instagram," Boasberg wrote. "The FTC offers no empirical evidence of substitution whatsoever."
The most-used parts of Meta's apps now look just like TikTok and YouTube.
The Reaction
"The deck was always stacked against us," said Joe Simonson, the FTC's director of public affairs. "We are reviewing all our options."
Meta shares fell less than 1% Tuesday. The stock is up about 2% for the year.
The Bottom Line
Meta won because the judge said the FTC must prove current monopoly power, not past dominance. TikTok and YouTube have changed the competitive landscape since Meta bought Instagram and WhatsApp over a decade ago.