The Facebook lawsuit, now centered around Meta Platforms Inc., involves significant antitrust claims brought by the Federal Trade Commission (FTC) and a coalition of 46 U.S. states. The lawsuit alleges that Facebook (now Meta) illegally maintained monopoly power in the social networking market through anticompetitive acquisitions of Instagram and WhatsApp. The case, one of the most consequential antitrust lawsuits against a tech giant, seeks to break up Meta’s conglomerate to foster competition and protect consumer choice.
Background of the Facebook Lawsuit
The lawsuit was originally filed in December 2020, with the FTC and multiple states alleging that Facebook’s acquisitions of Instagram (2012) and WhatsApp (2014) were strategic moves to neutralize competitors and entrench its monopoly. Plaintiffs argue that these acquisitions harmed consumers by limiting choices, stifling innovation, and raising barriers to entry for other social platforms.
Facebook denied the allegations, claiming the acquisitions were pro-competitive and beneficial to consumers. The case underwent several procedural developments, including dismissal of the initial complaint, refiling with amended allegations, and surviving motions to dismiss.
Parties and Jurisdiction
Plaintiffs included the FTC and 46 states and territories across the U.S.; defendants were Facebook Inc., now known as Meta Platforms, Inc. The case progressed in the U.S. District Court for the District of Columbia under Judge James E. Boasberg.
Details of the Allegations
Key allegations include:
- Maintaining monopoly power in U.S. social networking markets.
- Engaging in anticompetitive practices by acquiring potential rivals.
- Suppressing innovation and competition by controlling dominant platforms.
- Failing to seek appropriate regulatory approval and misrepresenting effects of acquisitions.
Legal Claims
The lawsuit invokes federal antitrust laws, primarily the Sherman Act, alleging monopolization and restraint of trade. The complaint seeks injunctive relief, including divestiture of Instagram and WhatsApp, to restore competition.
Trial and Procedural History
The trial commenced on April 14, 2025, with CEO Mark Zuckerberg and other executives testifying. The case included extensive discovery and depositions. Prior to trial, the court rejected defendants’ motions to dismiss, affirming the plausibility of plaintiff claims.
Settlement and Related Actions
Separately, Meta and its executives faced a high-profile shareholder derivative lawsuit related to user privacy violations and mishandling of data, culminating in a confidential $8 billion settlement in mid-2025. Meta also settled with the FTC in 2019 for $5 billion over earlier privacy violations.
Impact and Significance
The Facebook lawsuit represents a major test of antitrust enforcement in the technology sector. It highlights governmental efforts to rein in tech giants’ market dominance and protect consumer welfare in digital markets. The outcomes hold implications for future mergers, platform regulation, and privacy management.
Consumer and Business Advice
Consumers should be vigilant about privacy settings and understand potential market limitations due to platform consolidation. Businesses, especially tech startups, should monitor antitrust developments and adapt strategic growth plans to regulatory landscapes.
Conclusion
The Facebook lawsuit against Meta Platforms is a landmark case in antitrust law and digital governance. Its resolution will significantly influence competition policy, platform dynamics, and corporate responsibility in the internet age. Stakeholders across sectors await judicial determinations and policy reforms stemming from this pivotal litigation.
