The U.S. Federal Trade Commission said on Tuesday that it will appeal a court ruling that ended its antitrust case against Meta Platforms, renewing a high-profile fight over the company’s past acquisitions of Instagram and WhatsApp. The decision signals that federal regulators are not backing away from efforts to unwind deals they say reshaped competition in social media.
A spokesperson for the FTC confirmed the agency plans to ask a higher court to reconsider a 2025 decision by a federal judge in Washington. That ruling found that Meta Platforms does not currently hold an illegal monopoly because it faces meaningful competition, particularly from TikTok. The judge concluded that this competitive pressure undercut the FTC’s central theory of harm.
The case sits at the intersection of antitrust enforcement and the tech industry’s long-standing practice of buying fast-growing rivals. Regulators have argued that Meta’s earlier purchases of Instagram and WhatsApp helped the company maintain dominance by neutralizing potential competitors before they could scale.
Regulators press breakup theory despite court setback
The FTC originally sought court orders that could have forced Meta to divest Instagram and WhatsApp or restructure parts of its business. According to the agency, Meta spent billions on the acquisitions to eliminate emerging threats rather than compete with them on the merits. The regulator framed the deals as part of a broader strategy to entrench market power.
Meta countered that argument by pointing to shifts in user behavior and advertising markets. The company stressed that short-form video and messaging now face intense competition from multiple platforms, with TikTok cited as the clearest example. The district court agreed, ruling that current market dynamics did not support a finding of monopoly power.
By appealing, the FTC aims to revive its challenge and press appellate judges to take a broader view of how past acquisitions can affect competition over time. The outcome could shape how courts assess mergers in fast-moving digital markets, where dominance may evolve quickly and traditional antitrust measures can lag behind industry reality.
For Meta, the appeal prolongs legal uncertainty over two of its most important assets. For regulators, the case remains a test of how aggressively U.S. antitrust law can reach back to deals completed years ago. The appellate court’s response will likely influence future enforcement actions against large technology companies across the sector.
