Meta Defends Instagram and WhatsApp Amid TikTok Competition

Meta’s recent antitrust trial culminated in a bold defense of its acquisitions of Instagram and WhatsApp, arguing these platforms have reached their full potential under Meta’s stewardship. The company countered the Federal Trade Commission’s (FTC) claims by asserting that without Meta’s resources and integration, these apps might have remained niche or less effective, rather than emerging as dominant social networks.

Meta called on insiders like WhatsApp cofounder Brian Acton and an early Instagram executive to emphasize how Meta’s support accelerated growth and improved user experience, directly challenging testimony from Instagram’s cofounder Kevin Systrom, who suggested Meta withheld resources and that Instagram could have succeeded independently.

A pivotal aspect of Meta’s defense was addressing the so-called "elephant in the room": TikTok. The FTC’s case narrowly defines the market as personal social networking services focused on friends and family connections, excluding entertainment-centric platforms like TikTok and YouTube. Meta argued this misses the broader competitive reality where platforms vie for users’ time, content creators, and advertising revenue.

Economic experts supporting Meta highlighted TikTok’s rapid growth as a significant competitive force that constrains Meta’s market power. However, Judge James Boasberg cautioned against an overly broad market definition that would include virtually any activity competing for user attention, such as watching movies or reading books, noting that antitrust law requires a more focused approach.

The trial also explored user growth dynamics, with Meta’s chief marketing officer Alex Schultz explaining that Facebook and Instagram have nearly saturated the U.S. market, making competition for user engagement and attention increasingly critical. Judge Boasberg acknowledged this point, noting the difficulty for Instagram to grow substantially larger domestically.

The FTC’s lead economic expert, Scott Hemphill, argued that Meta’s dominance may have stifled consumer welfare and app quality across the personal social networking market, suggesting that without Meta’s control, the market might have evolved more favorably for consumers.

Meta responded by positioning itself as a dynamic, innovative American success story, emphasizing that dismantling its acquisitions could hinder innovation. The company also acknowledged shifts in user behavior, introducing features like "OG Facebook" to cater to users seeking traditional friend-based social experiences amid algorithm-driven feeds.

Judge Boasberg has yet to issue a verdict, with the possibility that a ruling against Meta could lead to the breakup of its key acquisitions. The case underscores the challenges of applying antitrust law to rapidly evolving digital markets where user engagement, content creation, and advertising intersect in complex ways.