LIVEUpdated Today, May 12, 2025, 4:26 PM UTCFTC v. Meta: The antitrust battle over WhatsApp and Instagramby Lauren Feiner and Alex HeathLinkFacebookThreadsRSSThe long-awaited antitrust trial between Meta and the Federal Trade Commission kicked off on April 14th. Over about two months, DC District Court Chief Judge James Boasberg is hearing arguments about whether then-Facebook illegally monopolized the market for “personal social networking services” through its acquisitions of Instagram and WhatsApp.The FTC first brought the case in late 2020. While it was initially thrown out by the judge, he let an amended version move forward after the government beefed up details about why it thinks Meta is a monopoly. This phase of the trial will help the judge determine if Meta is liable for breaking antitrust law. If he finds that to be true, he’ll later rule on how those harms should be remedied. The FTC is pushing for Instagram and WhatsApp should be spun off.This is the third US trial seeking to break up Big Tech in recent years, following the Justice Department’s two separate cases against Google over its search and ad tech businesses.Read below for all of our updates on the FTC v. Meta case.HighlightsThe TikTok ban is back in court — in Meta’s antitrust trialInstagram co-founder: Zuckerberg saw us as a ‘threat’ to FacebookThe government doesn’t understand MetaZuckerberg tells court he made WhatsApp and Instagram betterZuckerberg’s wildest ideas in Meta’s historyMark Zuckerberg takes the standToday, 8 minutes agoLauren FeinerMapping users’ connections is becoming less important.Creating a social graph of users’ friends, likes, and interests isn’t as meaningful for social apps as it used to be, Schultz says. That’s thanks to advances in AI, which has made it easier to predict and serve content to users they might not have even known they’d like. The FTC says Meta’s network effects and extensive mapping of users’ connections makes it difficult for upstarts to dislodge it.Today, 13 minutes agoLauren FeinerInstagram would have followed Twitter’s growth strategy.Had Meta never bought the app, Schultz says Instagram would have continued to copy Twitter. “I think Twitter had a less effective growth team than us,” he says.Today, 16 minutes agoLauren Feiner‘Kevin overreacted.’After a brief dip in Instagram’s growth rate in 2018 due to changes in how Facebook promoted it, the app’s growth rate recovered and continued to go up and to the right, a chart shown in court shows. Schultz says the results mean the change wasn’t as dire as Systrom might have believed.Today, 19 minutes agoLauren Feiner‘In the end, it didn’t matter.’For all the tension that came from Facebook’s decision to promote Instagram less from its app, it wasn’t all that consequential for Instagram’s growth in the end, Schultz testifies. Instagram’s growth rate dipped 14 percent, but it was still growing users overall. Ultimately, Schultz says, it was a “blip.”Today, 26 minutes agoLauren FeinerThe other side of the Instagram ‘skirmish.’Schultz acknowledges there was tension between his central growth team and Systrom in the mid-2010s, which we heard about from Systrom’s perspective a few weeks ago. While Systrom described a situation where Meta pulled back growth staff for Instagram, Schultz says Systrom was uninterested in the tweaks his team suggested to grow the app. It was only after the growth team pulled back from Instagram that Systrom realized their value and wanted them back, Schultz recalls.Today, 32 minutes agoLauren FeinerMeta trial enters week five.The FTC is expected to wrap up its case this week, meaning Meta will then get the chance to call its own witnesses for its case-in-chief. Meta CMO Alex Schultz is back on the stand testifying about the staffing and expertise the company gave Instagram after its 2012 acquisition. He says that for the first three to four years post-deal, Meta gave Instagram co-founder Kevin Systrom pretty much “everything he wanted.”May 8Lauren FeinerInstagram CEO testifies about competing with TikTok: ‘You’re either growing, or you’re slowly dying’Image: Cath Virginia / The Verge, Getty ImagesWhen Adam Mosseri took over Meta-owned Instagram as CEO in 2018, the app was experiencing what he’d later call “concerning” drops and plateaus in user engagement, thanks partly to fierce competition from a new app: TikTok. Instagram estimated in 2019 that 23 percent of the decline in time spent on Instagram in the US was due to TikTok. ByteDance’s video app kept expanding through the onset of the covid-19 pandemic. “We can’t explain it all, but what’s clear at this point is that we need to adapt, and do so quickly,” Mosseri wrote to his team in March 2020. Instagram needed to recover, he testified Thursday in a DC courtroom, because “you’re either growing, or you’re slowly dying.”Mosseri described the dire situation while testifying in the Federal Trade Commission’s antitrust trial against Meta, where the government alleges the company illegally monopolized the market for personal social networking services, a category that it says includes Snapchat but not more entertainment-focused apps like YouTube or TikTok. Mosseri’s testimony highlighted how much Instagram sees itself as in competition with TikTok, but it also showed that even as entertainment content becomes a larger portion of its offerings, connecting with friends is still a central part of its service — meaning it may still be a relevant market for the court to find it monopolizes.Read Article >May 8Lauren FeinerPeople like Meta about as much as Wells Fargo.Schultz says when he took on the task of leading the company’s brand reputation, it was like “catching a falling knife.” But things have since gotten better. He says relative brand sentiment for Meta falls somewhere in the middle of other companies it measures against, putting it pretty close to the bank that in 2020 settled a criminal investigation with the US government over alleged fraud.May 8Lauren FeinerFocusing on friends and family helped Instagram grow.When Instagram ran a test showing one group more friends and family-focused content, it reported in 2016 that it found a 7 percent increase in time spent on the platform and a 7 percentage point increase in user retention. Turning to cross-examination, Meta’s attorney points out a lot has changed in the market since that period.May 8Lauren FeinerKeeping Messenger alive post-WhatsApp could ‘prove there is competition.’Meta CMO Alex Schultz is back on the stand after Mosseri finished testifying. In a 2014 email shortly after Facebook announced its WhatsApp acquisition, Schultz responded to an executive concerned that the Messenger team was “demotivated by the announcement.” Schultz said he was “more motivated than ever to still be working on messenger.” The first explanation he listed: “Have to keep things honest so the deal doesn’t fall through and prove there is competition.”May 8Lauren Feiner‘Make Instagram Instagram again.’The FTC revisits the Kardashain-popularized meme pushing back on Instagram’s design overhaul that it later walked back. It’s walking through a 2022 interview with The Verge where Mosseri explained the decision. He testifies that people always complain about change, and that connecting with friends remains an important reason users come to the app, but Instagram has to to adapt the form in which they facilitate that in order to survive.May 8Lauren FeinerCreators always want more reach.“I never met a creator who didn’t think they deserved more reach than they were getting,” Mosseri says. But the reality is, he adds, there’s two times as many creators this year than last, so the field is getting more and more saturated. “Even though Instagram might benefit, there are winners and losers within the creator ecosystem.”May 8Lauren Feiner‘TikTok is notorious about being very loose with its data.’Mosseri takes the jab at TikTok after the FTC asks about the reliability of TikTok’s data evaluating how much its features are used. The FTC may be underscoring a TikTok executive’s earlier testimony that it’s “friends” feed only makes up a small percentage of videos viewed on the app. That goes toward the FTC’s argument that users don’t primarily go to TikTok to connect with friends, as they more often do with Instagram.May 8Lauren Feiner‘One of the best acquisitions of all time.’That’s how Mosseri describes Facebook’s decision to buy Instagram in 2012. He says that both companies “benefited greatly” — Instagram, from Facebook’s resources and experience, and Facebook, from the founders’ talent for building compelling products.May 8Lauren FeinerInstagram ‘drifted culturally a bit too far’ from Facebook.Mosseri found himself in the middle of the tension between the two companies, having moved to Instagram from Facebook. He understood some of the concerns the Instagram founders had about things like discontinuing some links from Facebook to Instagram, and similarly disagreed with certain changes from Facebook, but “also thought they were being made more of than they needed to be.”May 8Lauren FeinerInstagram has spent up to $700 million in a year to lure creators.Mosseri estimates this is the most Instagram has spent in a given year on creator incentives. Instagram sees creators as a good source of content after many rank-and-file users began posting fewer of their own updates.May 8Lauren Feiner‘Compared to the competition, we are looking a bit sad.’That’s how Mosseri describes the state of things in late 2021, where a chart in a board presentation shows relatively flat growth in time spent on Instagram. If you were to look at Instagram’s growth here in isolation, he says, it would look like Instagram had some positive, modest growth. But comparing it to TikTok’s explosive rise tells a different story.May 8Lauren Feiner‘We need to adapt, and do so quickly.’In a March 2020 update to Instagram staff, Mosseri gave a bleak overview of the challenges the company was facing. “The engagement trends, particularly in the US, have been concerning. Time spent has dropped, stories consumption and production have plateaued, Feed’s decline has continued, and time in Explore has been sliding since the summer of 2018,” he wrote, blaming the slide, in part on some of the company’s own mistakes “and competition from TikTok and Snapchat.”May 8Lauren FeinerMosseri calls the first version of Reels his ‘biggest mistake.’The first time around, Instagram tried to build its short-form video concept on top of Stories, which he says was “not a sound foundation” for the product. “I think we could have and should have been more aggressive,” he says about building Reels and competing with TikTok.May 8Lauren Feiner‘TikTok is probably the fiercest competition that we have faced.’Mosseri says Meta is always focused on competition, but TikTok represented the greatest he’s seen during his time at the company. After seeing engagement plateau in 2019, however, the company has since bounced back thanks to building out Reels and better AI-powered recommendations. “We’ve seen a lot of growth for the overall app, though the percentage of the app spent on friend content has gone down,” Mosseri testifies.May 8Lauren Feiner‘You’re either growing, or you’re slowly dying.’Mosseri testifies that “growth is everything” to Instagram and the company was deeply concerned to see feed impressions declining and engagement on stories plateauing in 2019. “Competition from TikTok is a big concern,” a presentation from the time says, adding a “conservative estimate” that 40 percent of the decline in time spent on Instagram was due to TikTok, and 23 percent in the US in particular.May 8Lauren FeinerTikTok and YouTube have become more similar to Instagram.Mosseri says he used to think of those platforms as more “lean-back experiences,” but that’s changed in recent years. TikTok is now “every bit as participatory as we are at this point” and as YouTube has leaned into Shorts, it’s “brought them closer to us.” Mosseri notes that TikTok now has a friends tab, which a TikTok executive testified earlier in trial only accounts for about 1 percent of the videos viewed on the app.May 8Umar ShakirThreads was originally going to live inside the Instagram appImage: The VergeInstagram boss Adam Mosseri is on the stand today in Meta’s antitrust trial. In trying to prove the social network is not a monopoly, he shared that the Threads app could have been just a feature inside of Instagram.Meta was working on built-in Threads features for Instagram first to compete with Twitter, which pioneered text-first social media apps. But Mosseri says the team made the “very contentious decision internally” to move the features out of Instagram.Read Article >May 8Lauren FeinerInstagram doesn’t want to be a ‘lean-back experience.’In a January Reel, Mosseri announced a new feed within Instagram of videos their friends have liked in an effort to make sure Instagram is not just “a lean-back experience, but a participatory one, a social one.” It underscores how Instagram still sees connecting friends as a core experience on its app. Mosseri testifies he was distracted watching the video because “I’m mostly focusing on the one comment that said ‘definitely not a good idea.’”May 8Lauren Feiner‘Part of our core identity’ is connecting friends.In this 2024 video played in court, Mosseri explains that Instagram doesn’t plan to go after the long-form video market because it’s not as conducive to sharing and interacting with friends. Mosseri testifies that even today, “I still think friends are an important part of the experience.”More StoriesMost PopularMost PopularUnited’s Starlink-powered Wi-Fi is the end of airplane modeYou can now submit your claims for Apple’s $95 million Siri spying settlementApple may release a ‘mostly glass, curved iPhone’ in 2027Whoop backpedals on its paid upgrade whoopsThe one controller to (almost) rule them allInstallerA weekly newsletter by David Pierce designed to tell you everything you need to download, watch, read, listen to, and explore that fits in The Verge’s universe.Email (required)Sign UpBy submitting your email, you agree to our Terms and Privacy Notice. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.Advertiser Content FromThis is the title for the native ad
