How an Obscure App Challenges Meta’s Social Media Monopoly

The Federal Trade Commission (FTC) is challenging Meta’s dominance in social media through an antitrust lawsuit that could reshape the industry. Central to the case is whether MeWe, a relatively obscure blockchain-based social networking app, qualifies as a closer competitor to Instagram than the popular video-sharing platform TikTok. This distinction is crucial because it defines the relevant market for personal social networking services (PSNs), which the FTC argues Meta monopolizes.

MeWe differentiates itself by leveraging the Frequency blockchain, allowing users to port their social connections to other apps supporting this decentralized protocol. Despite claiming 20 million users, MeWe remains largely unknown to mainstream audiences, including many tech insiders. Meta’s CEO Mark Zuckerberg testified he was unaware of MeWe before the lawsuit, highlighting the app’s obscurity.

The FTC’s argument rests on defining the market narrowly as PSNs—platforms primarily designed to connect users with friends and family. According to the FTC, while many social apps exist, few serve this specific purpose effectively, leaving Meta’s Facebook and Instagram as dominant players. The agency contends that Meta’s acquisitions of Instagram and WhatsApp were strategic moves to eliminate competition and solidify its monopoly in this space.

Meta counters by arguing that competition should be viewed broadly as a battle for users’ time and attention across all social media platforms, including TikTok and YouTube. The company points out that its platforms have evolved to emphasize influencer content and entertainment, blurring the lines between personal social networking and broader social engagement.

The FTC supports its market definition by presenting testimony from executives of other social platforms, who explain why their apps do not fulfill the same personal connection role as Facebook and Instagram. For example, Strava focuses on fitness, Pinterest on interests, and TikTok primarily on entertainment, with only a small fraction of content involving friends and family.

The outcome of this case depends heavily on how Judge James Boasberg defines the relevant market. He must weigh Meta’s internal documents, competitor testimonies, and his own judgment to determine whether Meta’s control over personal social networking services constitutes an illegal monopoly. This decision will have far-reaching implications for competition, user choice, and regulatory approaches in the tech industry.

This case highlights the complexities of antitrust law in the digital age, where defining markets is challenging due to evolving user behaviors and platform functionalities. It underscores the importance of nuanced regulatory scrutiny to ensure fair competition and protect consumer interests in rapidly changing technology ecosystems.