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Meta’s strategy in court hinges on its ability to challenge the Federal Trade Commission’s (FTC) market definition, particularly arguing that TikTok is its main competitor. If Meta successfully demonstrates that its market share falls short of monopolistic levels due to TikTok’s presence, it could undermine the FTC’s position, as highlighted by Big Tech on Trial.
Are Facebook and Instagram Real Alternatives to TikTok?
Meta asserts that users of TikTok naturally shifted to Instagram during a recent outage. However, this narrative is complicated by reports indicating that Meta engaged in aggressive advertising to entice users to transition. There were even rumors alleging that Meta secretly acquired TikTok shortly before its outage, as many users encountered Meta advertisements promoting the linking of their TikTok accounts to Meta’s platforms. Nevertheless, the anticipated surge in users for Instagram and Facebook was minimal; data from Sensor Tower suggested that the outage led to only a slight uptick in daily active users and app downloads on Meta’s platforms, according to Wired.
An intriguing angle the court might explore is the behavior of Instagram or Facebook users who decide to abandon those platforms. Should the FTC argue that these users do not consider TikTok a valid alternative for connecting with friends and family, this could strengthen their case for a more distinct market definition.
Kenneth Dintzer, a partner at Crowell & Moring and previously the leading attorney in the DOJ’s successful case against Google’s search monopoly, noted that Chief Judge James Boasberg signaled that recognizing Meta’s competition with TikTok does not adequately resolve the issue of users wanting to connect with family and friends.
Though Mark Zuckerberg’s defense on TikTok carries weight, it may still lack influence over the judge. There was a notable moment during the proceedings when Judge Boasberg posed a thought-provoking question regarding the significance of friends being on a specific platform if they can share content externally. Zuckerberg acknowledged the relevance of the question and pointed out that sharing could occur across various platforms, with each one serving its role as a “discovery engine,” as reported by Big Tech on Trial.
Source
arstechnica.com