WASHINGTON—Today in Washington, DC, a trial begins over Meta’s acquisitions of WhatsApp and Instagram. This unprecedented court proceeding comes after the Federal Trade Commission (FTC) previously approved then-Facebook’s acquisition of Instagram in 2012 and WhatsApp in 2014, increasing instability and uncertainty for U.S. businesses and the economy.
“For innovation and competition to flourish in America, businesses need to trust that regulators will act in good faith—protecting consumers and enforcing the law fairly. But this bait-and-switch against Meta for acquisitions approved over ten years ago in the fiercely competitive social media marketplace will have serious ripple effects not only for the U.S. tech industry, but across all American businesses,” said Patrick Hedger, NetChoice Director of Policy.
Hedger continued: “Today, we’re seeing massive competition and disruption in social media, from generative AI to innovative moderation practices. Instead of championing this creative spirit, Biden’s regulators revived these claims against Meta as part of its ‘strike force’ to punish American business champions for their success. With Meta at the forefront of open-source AI innovation and a global competitor, the outcome of this trial will have spillover into the entire economy. It will create a fear among businesses that making future, pro-competitive investments could be reversed due to political discontent—not the necessary evidence traditionally required for an anticompetitive claim.”
For context: In 2020, the FTC filed a lawsuit against Meta, claiming that the company was acting anticompetitively when it acquired WhatsApp and Instagram. But a court rightfully threw out those claims in June 2021. However, the case was refiled shortly after progressive Lina Khan took the Chair at the FTC under President Biden in August 2021. Biden’s bureaucrats wielded antitrust as a weapon against U.S. businesses consumers love but regulators personally disliked, with their claims relying on little evidence and emphasizing personal and ideological preferences.
The FTC’s trial against Meta will have serious consequences not only for American tech investment, mergers and acquisitions, but all U.S. businesses, the economy and our global competitiveness. Antitrust should put Americans first—not punish disfavored companies for their success, and many will be watching the outcome of these proceedings.
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