Meta, the parent company of Facebook, WhatsApp and Instagram, may have to sell its two platforms WhatsApp and Instagram. The reason for this is the hearing of an antitrust case against the company in Washington, USA. The US Competition and Consumer Watchdog has accused the company of buying Instagram ($1 billion) in 2012 and WhatsApp ($22 billion) in 2014 to eliminate competition in the market and create its own monopoly.
The Federal Trade Commission (FTC) has allowed the purchase of WhatsApp and Instagram. But according to the rules, the FTC also has to monitor the consequences of the deal. Therefore, they had to file a case against Meta. If the FTC wins this case, Meta CEO Mark Zuckerberg may be forced to sell both Instagram and WhatsApp.
Zuckerberg, former COO may be called for questioning
Both Zuckerberg and the company's former Chief Operating Officer (COO) Sheryl Sandberg may be called for questioning during the hearing of this case. The hearing of this antitrust case is expected to last more than 6 weeks. Rebecca Howe Ellensworth, a professor of antitrust at Vanderbilt Law School, said that Zuckerberg bought Facebook to reduce competition from Instagram.Zuckerberg's conversations and his emails may provide the most convincing evidence in this case. Zuckerberg had said that it was better to buy the company than to compete in the market.
Mark Zuckerberg's argument...
Meta argued that it would win this case because the experience of its users improved after buying Instagram. According to the report, Meta may argue that intent is not very relevant in the antitrust case.