FTC Targets Meta’s Market Power, Calls Zuckerberg to Testify

The Federal Trade Commission (FTC) is set to question Meta CEO Mark Zuckerberg next month in an antitrust trial aimed at undoing the company’s acquisition of Instagram, according to the New York Post. The trial, scheduled to begin in April, is part of the government’s broader crackdown on Big Tech.

According to the New York Post, Zuckerberg is among several high-profile Meta executives listed as witnesses in a court filing submitted by FTC attorneys on Wednesday. The FTC intends to question Zuckerberg for seven hours—significantly longer than other witnesses, such as Instagram co-founder Kevin Systrom, whose testimony is estimated to last three hours.

Other key figures named on the FTC’s witness list include former Facebook COO Sheryl Sandberg, current Instagram head Adam Mosseri, and Meta CEO Javier Olivan. The FTC’s case argues that Meta, formerly known as Facebook, has illegally maintained a monopoly over the social media market. The agency claims that the company deliberately overpaid to acquire Instagram for $1 billion in 2012 and WhatsApp for $19 billion in 2014 to suppress competition from emerging rivals.

Meta has pushed back against these allegations. A company spokesperson stated, “We are confident that the evidence at trial will show that the acquisitions of Instagram and WhatsApp have been good for competition and consumers.”

Related: French Publishing Groups Sue Meta Over Alleged AI Copyright Violations

Per the New York Post, the FTC initially filed its lawsuit against Meta in 2020, during the Trump administration. Although US District Judge James Boasberg dismissed some of the FTC’s claims last November, he allowed the core arguments concerning Instagram and WhatsApp to proceed to trial. However, Boasberg also cautioned that the FTC faced significant hurdles in proving its case, noting that some of its arguments appeared to stretch existing antitrust laws to their limits.

In its lawsuit, the FTC is seeking to break up Meta by forcing it to divest Instagram and WhatsApp as separate companies. The agency’s leadership, currently under Chairman Andrew Ferguson, has signaled an aggressive approach toward Big Tech regulation. Just this week, the FTC announced plans to move forward with a lawsuit against Amazon over alleged deceptive practices related to its Prime subscription service, despite recently requesting a delay in proceedings due to resource constraints.

Source: The New York Post