Meta's $20 billion acquisitions of Instagram and WhatsApp back under fire as US government appeals loss

The Federal Trade Commission is taking another swing at Meta, filing an appeal Tuesday to challenge a November ruling that cleared the tech giant of monopoly charges. The move keeps alive the government's years-long effort to potentially force Meta to divest Instagram and WhatsApp—acquisitions made over a decade ago for $1 billion and $19 billion respectively.US District Judge James Boasberg had sided with Meta last year, concluding the company doesn't hold an illegal monopoly in personal social networking. His reasoning? The explosive growth of TikTok and YouTube fundamentally reshaped the competitive landscape, undercutting the FTC's arguments about Meta's market dominance.The appeal adds an awkward political dimension for Mark Zuckerberg, who spent much of 2025 attempting to repair his relationship with Donald Trump. Meta donated $1 million to Trump's inauguration fund and paid $25 million to settle lawsuits over the president's suspended Facebook and Instagram accounts. Despite these overtures, the FTC—now operating under Trump's second term—remains committed to the case."Meta violated our antitrust laws when it acquired Instagram and WhatsApp," FTC spokesperson Joe Simonson said, emphasizing that "American consumers have suffered from Meta's monopoly." The agency's Bureau of Competition Director Daniel Guarnera framed the appeal as protecting fair competition, arguing Meta maintained dominance "not through legitimate competition, but by buying its most significant competitive threats."If the FTC succeeds on appeal, Meta could face forced restructuring or divestment of its prized acquisitions. The original 2020 lawsuit alleged Meta identified Instagram and WhatsApp as nascent threats and purchased them specifically to eliminate competition—a strategy the government claims allowed Meta to degrade service quality while loading up on ads without fear of users fleeing to alternatives.Meta's response has been measured. Spokesperson Andy Stone simply reiterated that the district court decision was "correct" and that Meta "will remain focused on innovating and investing in America"—echoing Trump-friendly talking points about domestic job creation even as the legal battle intensifies.