Observations

Meta Faces High-Stakes Antitrust Battle as FTC Challenges Instagram and WhatsApp Acquisitions, Amid Rising Trademark Disputes

Meta Faces High-Stakes Antitrust Battle as FTC Challenges Instagram and WhatsApp Acquisitions, Amid Rising Trademark Disputes
Apr/16/2025

Meta Platforms, the parent company of Facebook, finds itself embroiled in a landmark antitrust trial brought by the Federal Trade Commission (FTC), which seeks to dismantle the tech giant’s market dominance by compelling the sale of Instagram and WhatsApp. The FTC argues that Meta illegally neutralized competition through these acquisitions, highlighting internal communications from CEO Mark Zuckerberg acknowledging Instagram as a potential disruptor. Meta counters, emphasizing robust competition from rivals like TikTok, YouTube, X, and Pinterest, which it contends prove consumer choice remains plentiful. Further underscoring Meta’s intellectual property challenges, WhatsApp LLC recently prevailed at WIPO (Case No. D2025-0686) against misuse of its trademark in the disputed domain jtwhatspp.com. As the stakes intensify—given Instagram’s critical role in driving roughly half of Meta’s U.S. ad revenues—the court’s ruling could significantly reshape the digital landscape. The following chart illustrates the popularity of global messenger apps by monthly downloads in January 2025, underscoring WhatsApp’s prominent market position and the significant implications of its potential divestiture.