In the midst of Meta’s most serious antitrust challenge to date, Mark Zuckerberg’s defence strategy heavily relied on highlighting TikTok as a major competitor rather than focusing solely on his own technology giant. Over the course of three days of testimony in a US federal court in Washington, the billionaire tech founder emphasized the rapid growth and success of the video platform owned by Chinese parent company ByteDance.
The primary goal of Zuckerberg’s praise for his rival was to combat allegations from the US Federal Trade Commission (FTC) that Meta holds an illegal monopoly. If proven, these charges could have significant repercussions for Meta, potentially resulting in the forced breakup of its $1.5 trillion group and the spinoff of Instagram and WhatsApp, two key apps under the Meta umbrella. Zuckerberg has made it clear that he is prepared to vigorously defend against such outcomes.
The FTC’s lawsuit centers around the accusation that Meta engaged in a “systematic strategy” to eliminate competitors, particularly through the acquisitions of Instagram and WhatsApp in 2012 and 2014, respectively. Evidence presented by FTC lawyers included emails from Zuckerberg expressing concerns about potential threats from these emerging platforms and a desire to use mergers and acquisitions to strengthen Meta’s position in the mobile and advertising markets.
However, the crux of the FTC’s case hinges on proving that Meta holds a monopoly, a task that some antitrust experts believe may be challenging. Zuckerberg and former Meta COO Sheryl Sandberg focused their testimonies on highlighting TikTok’s explosive growth and the competition it presents to Meta, suggesting that the two platforms serve as substitutes for each other in the eyes of most users.
In addition to proving monopoly status, the FTC must also demonstrate consumer harm, which traditionally involves a monopolist driving up prices. Given that Meta’s services are offered for free, the FTC’s argument centers on degraded user experiences resulting from the platform’s dominance, including excessive advertisements and inadequate privacy protections.
The key challenge for the FTC will be convincing Judge James Boasberg that Meta has indeed dominated the “personal social-networking” market focused on friends-and-family connections, a market segment that excludes TikTok and YouTube.
The ongoing trial follows unsuccessful settlement negotiations between Meta and the FTC, with the agency reportedly seeking a substantial financial settlement. Meta’s lowball offer during negotiations indicated its confidence in the weakness of the FTC’s case, according to sources close to the discussions.
Despite Meta’s confidence in its position, some experts believe that Judge Boasberg may be receptive to the FTC’s arguments. The court’s previous statements suggest an openness to the idea of a distinct personal social networking market, contrary to Zuckerberg’s assertions in court.
Throughout the trial, Zuckerberg defended Meta’s acquisitions of Instagram and WhatsApp as strategies to accelerate growth and respond to competitive threats. However, the FTC highlighted past statements and emails from Zuckerberg expressing concerns about potential competition and the need to bolster Meta’s position through acquisitions.
One particularly noteworthy email from Zuckerberg in 2018 mentioned the possibility of spinning off Instagram in response to growing calls for the breakup of big tech companies. This email serves as a stark reminder of the ongoing challenges and scrutiny facing Meta in the realm of antitrust enforcement.
In conclusion, the outcome of the FTC’s case against Meta will have significant implications for the tech industry and the future of competition within social networking markets. As the trial continues, both sides are presenting their arguments and evidence in an effort to sway the court’s decision.
Setelah itu terjemahkan ke Bahasa Indonesia level B1 dan ambil teks hanya bahasa Indonesia. Simpan tag HTML. Jangan kembalikan versi bahasa Inggris, Jangan kembalikan ke saya. Jangan kembalikan teks yang dikirim. Berikan hanya teks bahasa Indonesia.