Former US Federal Trade Commission chair Lina Khan said on Monday that Facebook “had panic” when it acquired Instagram and WhatsApp when smartphone use began.
“We saw companies like Instagram and WhatsApp experiencing astronomical growth. That’s the point where we relied on this buy or boring scheme, which would either buy the network or cut it off the network if we couldn’t beat our rivals.”
MetaFacebook, Instagram and WhatsApp parent companies will begin trials at the FTC on Monday. The government claims it monopolized the personal social networking market with a $1 billion acquisition of Instagram in 2012 and a $19 billion purchase in 2014.
Meta did not immediately respond to CNBC’s request for comment.
The test could potentially sell the social media giants of both companies. Meta detailed his differences with the FTC and repeatedly submitted a brief, pretrial summary of his belief that the company has no exclusivity.
“There is no expiration date regarding the illegality of the transaction,” Khan said. “I think there’s a way the entire social networking ecosystem looks different today, as Facebook has been allowed to go out and buy them.”
The case is at its core about “free and fair dealing,” Kahn added. Although the settlement has not been reached, she said there is always a chance of a settlement before the lawsuit ends.
As President Donald Trump regularly holds technology executives and courts, Kern said he was “pleasant” that Meta and CEO Mark Zuckerberg’s efforts to dismiss the case have failed so far.
Zuckerberg has donated $1 million to Trump’s inauguration fund, co-hosted the first ball, and reportedly met with the president multiple times since January.
“We’ll all have to wait and see until the trial is over, and until we actually get the verdict of liability and then get the remedy,” Khan said.
