Photo credit: arstechnica.com
Meta is facing significant challenges as the Federal Trade Commission (FTC) considers the possibility of forcing the company to divest itself of key assets such as WhatsApp and Instagram. These platforms are crucial to Meta’s financial wellbeing, with projections indicating that Instagram could account for over half of the company’s U.S. advertising revenue by 2025, according to forecasts by eMarketer.
The trial surrounding these issues is anticipated to extend over eight weeks, with key testimonies expected in the initial sessions. Notable figures like Sheryl Sandberg, former Chief Operating Officer of Facebook, and Kevin Systrom, Instagram’s co-founder, are slated to provide their insights during this critical phase of the trial.
Eventually, all emails and evidence that have been unsealed will be accessible through a designated website managed collaboratively by both the FTC and Meta. However, as of now, there is no confirmed timeline or link for when this public evidence will become available.
Meta Challenges the FTC’s Claims
The FTC’s position centers around the assertion that Meta’s acquisitions of Instagram and WhatsApp were excessively priced, aimed at preserving an alleged monopoly in the personal social networking domain. This market includes competitors like Snapchat and MeWe, which markets itself as a privacy-centric alternative to Facebook.
During initial arguments, the FTC alleged that Meta eliminated competitive threats and subsequently compromised the quality of its platforms by restricting user privacy and bombarding users with ads.
Meta countered these claims by asserting that it has enhanced both Instagram and WhatsApp following the acquisitions. During the proceedings, Meta’s attorney humorously dismissed the FTC’s “ad load theory,” which drew laughter from those in attendance, according to reports from attendees. “If you don’t like an ad, you scroll past it. It takes about a second,” he remarked.
Additionally, another Meta representative noted in her blog that “Instagram and WhatsApp exemplify the benefits of successful acquisitions: through substantial investments, Meta has advanced the reliability and security of these platforms.”
Source
arstechnica.com