Meta's CEO Mark Zuckerberg testified in a landmark antitrust case where the Federal Trade Commission accused the company of using a 'buy or bury' strategy. This involved acquiring competitors like Instagram and WhatsApp to eliminate competition and reinforce its market dominance. FTC lawyer Daniel Matheson stated that this practice allowed Meta to secure these companies above market value, creating barriers to entry for other apps. The outcome could lead to significant restructuring or divestments, marking a pivotal moment for U.S. regulatory efforts against large tech companies.
"They decided that competition was too hard, and it would be easier to buy out their rivals rather than compete with them," FTC lawyer Daniel Matheson said Monday.
For more than a decade, he argued, this strategy allowed Meta to purchase their competition for far above market value - establishing so-called 'entry barriers' to protect their social media dominance.
If successful, the FTC would likely seek the court to order Meta to restructure its company, or to divest from acquired companies, including Instagram and WhatsApp.
The victory would be a notable win for the federal government at a time when it has struggled to prevail in court challenges involving Silicon Valley.
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