Mark Zuckerberg Struggling with the Notion that Trump's Presidency Would Eliminate Legal Challenges for Meta
Meta's Antitrust Trial: Zuckerberg's Alleged Lobbying of Trump
Meta, the parent company of Facebook, is currently embroiled in an antitrust trial by the Federal Trade Commission (FTC) over allegations of violating competition laws due to the acquisitions of Instagram and WhatsApp.
According to reports, FTC Chairman Andrew Ferguson was unwilling to settle for anything less than $18 billion, along with a consent decree. However, Meta CEO Mark Zuckerberg offered a significantly lower settlement of $450 million, which was rejected by the FTC, who reportedly sought $30 billion.
The FTC's lawsuit alleges that Meta's acquisitions of Instagram and WhatsApp were anticompetitive "buy-or-bury" tactics to neutralize emerging rivals. Internal documents and communications presented by FTC lawyers show that Zuckerberg and other executives acknowledged buying these platforms to eliminate competition.
Zuckerberg is expected to continue testifying on Wednesday, with the antitrust trial expected to last eight weeks. During his court testimony, Zuckerberg defended a 2018 memo in which he admitted the possibility of having to spin off Instagram and WhatsApp in the future due to antitrust concerns.
Reports suggest that Zuckerberg attempted to influence former President Donald Trump to intervene in the FTC's antitrust case against Meta. According to a report from the Wall Street Journal, Zuckerberg believed that President Trump would support him in the antitrust case. However, the exact nature and content of Zuckerberg's interactions with Trump on this matter remain unclear.
Zuckerberg's belief in Trump's support may have been due to his company's donation of $1 million to Trump's inauguration and a settlement of $25 million with the president. The broader context includes ongoing legal battles and high stakes given the potential requirement for Meta to divest key acquisitions.
It is important to note that there is speculation that President Trump may intervene in the Meta antitrust case, although it would be highly unusual and unethical. Meta has publicly stated that the FTC's antitrust case against them is absurd, as every 17-year-old in America knows that Instagram does not compete with TikTok.
Two Democratic FTC commissioners were fired last month, leaving the commission with only two Democrats. Alvaro Bedoya, one of the fired commissioners, stated that Big Tech is spending large sums to benefit Trump. This raises concerns about the impartiality of the FTC's antitrust case against Meta.
Meta did not respond to Gizmodo's request for comment on Tuesday. The antitrust trial is a significant event in the tech industry, with potential implications for the future of competition in the social media space.
- Zuckerberg, reportedly, attempted to influence former President Donald Trump to intervene in the FTC's antitrust case against Meta, with the Wall Street Journal suggesting that he believed Trump would support him in the antitrust case.
- In the tech industry, the ongoing trial between Meta and the FTC over allegations of anticompetitive practices could have significant implications for the future of competition in the social media space.
- The FTC's lawsuit alleges that Meta's acquisitions of Instagram and WhatsApp were anticompetitive "buy-or-bury" tactics to neutralize emerging rivals, with internal documents and communications presented by FTC lawyers showing that Zuckerberg and other executives acknowledged buying these platforms to eliminate competition.
- There is ongoing legal discussion about the role of politics and policy-and-legislation in the Meta antitrust case, with concerns being raised about the impartiality of the FTC's antitrust case against Meta following the firing of two Democratic FTC commissioners last month.
- This significant event in the tech industry is not limited to just business and entrepreneurship, as finances play a crucial role in the battle between Meta and the FTC, with the potential requirement for Meta to divest key acquisitions at stake.
