Technology giant Meta Platforms (META) will go to trial in April 2025 to defend itself against allegations from the U.S. Federal Trade Commission (FTC) that it uses social media platforms Instagram and WhatsApp to stifle competition.
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The FTC initially sued Meta Platforms in 2020, alleging the company acted illegally under U.S. antitrust laws to maintain a monopoly on personal social networks. Specifically, the FTC claims that Meta overpaid for Instagram in 2012 and WhatsApp in 2014 to eliminate emerging competitors instead of competing on its own in the mobile social media ecosystem.
Federal Judge James Boasberg has now set a trial in the case for April 14, 2025 after rejecting Meta’s argument that the case should be dismissed as it depends on an overly narrow view of social media. The lawsuit does not account for competition from ByteDance’s TikTok, Alphabet’s (GOOGL) YouTube, X, and Microsoft’s (MSFT) LinkedIn, Meta’s lawyers argued unsuccessfully.
Burden of Proof
As the plaintiff in the case, the burden of proof falls on the FTC. And while Judge Boasberg has allowed the case to proceed to trial, he said when setting the court date that, “time and technological change pose serious challenges” to the FTC’s definition of what constitutes a social media market.
“The Commission faces hard questions about whether its claims can hold up in the crucible of trial. Indeed, its positions at times strain this country’s creaking antitrust precedents to their limits,” the judge said in his ruling. META stock has increased 60% this year.
Is META Stock a Buy?
The stock of Meta Platforms has a consensus Strong Buy rating among 44 Wall Street analysts. That rating is based on 40 Buy, three Hold, and one Sell recommendations made in the past three months. The average META price target of $661.97 implies 17.14% upside from current levels.
