A federal judge has ruled on whether Meta is a monopoly.

The FTC contended that Facebook, which rebranded as Meta in 2021, acquired two social media platforms to circumvent competition, which the FTC regarded as a violation of antitrust laws. The seven-week trial featured testimony from Meta's founder, chairman, and CEO Mark Zuckerberg, who asserted that Meta faces considerable competition from platforms like YouTube and TikTok.

Federal Judge James Boasberg noted Zuckerberg's comments, stating in his opinion that YouTube and TikTok prevent Meta from monopolizing social media. Boasberg also noted the social media market's evolution since the FTC's lawsuit, particularly regarding AI. He stated that AI-generated content undermines the FTC's monopoly claims, concluding that "Meta holds no monopoly in the relevant market."

Boasberg's ruling indicated that Meta apps account for a "modest share" of social media usage across platforms like Facebook, Instagram, Snapchat, TikTok, and YouTube, and that this share is decreasing. He added that even without YouTube, Meta would not be considered a monopoly. The ruling also stated that "TikTok — which Meta considers its fiercest competitor — broke into the market only seven years ago … and has been oerrunning the market ever since."

Following the decision, Meta's Chief Legal Officer Jennifer Newstead stated, "Our products benefit people and businesses and demonstrate American innovation and economic growth. We look forward to continuing to partner with the Administration and to invest in America."

FTC Director of Public Affairs Joe Simonson commented, "We are deeply disappointed in this decision. The deck was always stacked against us with Judge Boasberg, who is currently facing articles of impeachment. We are reviewing all our options."

The acquisition of Instagram is considered among the most successful tech acquisitions. Instagram's valuation is currently estimated between $441 billion and $538 billion, whereas Facebook initially paid $1 billion. Initially known for disappearing messages, Instagram gained popularity as users shared photos. The introduction of the Stories feature from Snapchat significantly boosted the app's popularity.

Meta argued that a forced separation would harm the company. Instagram provides ad revenue, while WhatsApp attracts business subscribers internationally. Zuckerberg mentioned Facebook's declining popularity during the trial. Meta also argued that regulators previously approved the Instagram and WhatsApp deals.

This ruling is a significant victory for both Meta and Big Tech, especially as U.S. regulators have been targeting companies like Google. The Alphabet subsidiary has been deemed a monopoly in two cases related to its search engine and online advertising business. Other tech firms, including Apple and Amazon, are also facing government scrutiny.