FTC Alleges “Buy or Bury” Strategy

The Federal Trade Commission (FTC) is intensifying its scrutiny of Meta Platforms Inc. (Nasdaq: Meta), challenging the acquisitions of Instagram and WhatsApp. The core of the FTC’s argument revolves around the assertion that these acquisitions were part of a deliberate “buy or bury” strategy employed by Meta to stifle competition in the burgeoning social media landscape.

A History of Acquisitions under the Microscope

The FTC’s legal challenge specifically targets Meta’s past acquisitions, alleging that the company strategically eliminated potential rivals by acquiring them. The acquisitions of Instagram in 2012 for $1 billion and WhatsApp in 2014 for $19 billion are central to the FTC’s case. These acquisitions, according to the FTC, allowed Meta to consolidate its dominance in the personal social networking market.

Metas took over the ecosystem of social networks drastically.

Former FTC chairwoman Lina Khan

Potential Ramifications for Meta

This legal action by the US Ministry of Trade carries important implications for Meta. The most drastic outcome could be the forced divestiture of Instagram and WhatsApp. Such a move would undoubtedly have a profound impact on the company, given the widespread popularity and strategic importance of both platforms. As of Q1 2025, Instagram boasts over 2 billion monthly active users, while WhatsApp counts over 2.5 billion, making them integral components of Meta’s global reach and revenue streams.

Meta’s Defense: A Crowded Social Media Landscape

Meta vehemently denies any monopolistic practices, arguing that the social media market remains highly competitive. The company points to the existence of numerous other platforms,including SNAP Inc.’s Snapchat,YouTube (owned by Google),TikTok (owned by Bytedance),mewe,and X (formerly Twitter),as evidence of a diverse and dynamic market. Meta contends that these platforms offer viable alternatives to its services, thereby negating any claims of a monopoly.

Negotiations and Potential Settlement

as Meta prepares to engage with the FTC, the possibility of a settlement remains on the table. Negotiations could potentially lead to an agreement that avoids the drastic measure of forced divestiture. However, the FTC’s firm stance suggests that any settlement would likely involve significant concessions from Meta, potentially including restrictions on future acquisitions or commitments to promote competition.

The Broader Antitrust context

This case against Meta is part of a broader trend of increased antitrust scrutiny of major technology companies. regulators around the world are increasingly concerned about the potential for these companies to stifle competition and harm consumers. The outcome of this case could set a precedent for future antitrust actions against other tech giants.