US judge gives FTC green light to pursue Meta lawsuit

The US Federal Trade Commission wants the social media giant, formerly known as Facebook, to sell Instagram and WhatsApp, which it acquired in 2012 and 2014, respectively. The FTC's first attempt to launch the lawsuit was dismissed last year, when US District Court judge, James Boasberg, said it had failed to plausibly establish that Facebook held a monopoly over the social network market.

But he also allowed the FTC to amend its complaint, and on Tuesday Boasberg concluded that the lawsuit could now proceed.

In his written opinion, he said the alleged facts were “far more robust and detailed than before, particularly in regard to the contours of defendant’s alleged monopoly”.

He added: “Although the agency may well face a tall task down the road in proving its allegations, the Court believes that it has now cleared the pleading bar and may proceed to discovery.”

He also dismissed an argument made by Facebook that the complaint should not be allowed because of the involvement of FTC chair Lina Khan, a critic of so-called Big Tech.

Boasberg wrote: “Although Khan has undoubtedly expressed views about Facebook’s monopoly power, these views do not suggest the type of ‘axe to grind’ based on personal animosity or financial conflict of interest that has disqualified prosecutors in the past.”

Holly Vedova, director of the FTC’s bureau of competition, said the agency had presented a “strong, amended complaint, and we look forward to trial”.

Meta said it remained confident that “the evidence will reveal the fundamental weakness of the claims.

“Our investments in Instagram and WhatsApp transformed them into what they are today. They have been good for competition, and good for the people and businesses that chose to use our products.”