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The FTC’s Opposition to Meta’s Merger Demonstrates a Dislike for Consolidations, Yet Falls Short on Legal Basis

Analysis of Meta’s Motion for Summary Judgement in FTC Antitrust Case: Lack of Legal Grounds and Antipathy Towards Mergers

Meta’s ongoing case against the FTC for alleged monopolization has taken an interesting turn as the tech giant filed a Motion for Summary Judgement last Friday. The case, which dates back to 2020 and focuses on Meta’s acquisitions of Instagram and Whatsapp, has raised questions about the FTC’s approach to antitrust enforcement.

One of the key arguments made by Meta in its motion is the lack of legal grounds for the FTC’s case. The agency had previously approved the acquisitions of Instagram and Whatsapp when they were proposed almost a decade ago, only to sue Meta years later, alleging anticompetitive behavior. This raises concerns about the FTC’s motives and whether its actions are truly in the best interest of consumers.

Furthermore, Meta’s motion highlights the potential negative consequences of breaking up the company or forcing it to divest its acquisitions. The integration of Instagram and Whatsapp into Meta’s services over the past decade has created value for consumers, and splitting them off could harm competition and consumer choice. Additionally, a divestiture could make it harder to address issues like harmful content and user privacy, as one centralized company is more efficient at handling these challenges.

The case also brings into question the FTC’s definition of the relevant market, which conveniently excludes competitors like TikTok and Reddit. In a properly defined market, Meta does not hold a monopoly, and there is no evidence of anticompetitive behavior. This raises doubts about the FTC’s case and whether it is based on sound legal principles.

Overall, Meta’s motion for summary judgement sheds light on the complexities of antitrust enforcement and the potential consequences of targeting successful companies like Meta. As the case continues to unfold, it will be interesting to see how the court rules and what implications it may have for future mergers and acquisitions in the tech industry.

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