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Meta prevails in historic FTC antitrust case, won't have to break off WhatsApp, Instagram

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Meta prevails in historic FTC antitrust case, won't have to break off WhatsApp, Instagram
News

News

Meta prevails in historic FTC antitrust case, won't have to break off WhatsApp, Instagram

2025-11-19 04:09 Last Updated At:12:06

SAN FRANCISCO (AP) — Meta has prevailed over an existential challenge to its business that could have forced the tech giant to spin off Instagram and WhatsApp after a judge ruled that the company does not hold a monopoly in social networking.

U.S. District Judge James Boasberg issued his ruling Tuesday after the historic antitrust trial wrapped up in late May. His decision runs in sharp contrast to two separate rulings that branded Google an illegal monopoly in both search and online advertising, dealing regulatory blows to the tech industry that for years enjoyed nearly unbridled growth.

The Federal Trade Commission “continues to insist that Meta competes with the same old rivals it has for the last decade, that the company holds a monopoly among that small set, and that it maintained that monopoly through anticompetitive acquisitions,” Boasberg wrote in his ruling. “Whether or not Meta enjoyed monopoly power in the past, though, the agency must show that it continues to hold such power now. The Court’s verdict today determines that the FTC has not done so.”

The federal agency had argued that Meta maintained a monopoly by pursuing an expression CEO Mark Zuckerberg made in 2008: “‘It is better to buy than compete.’ True to that maxim, Facebook has systematically tracked potential rivals and acquired companies that it viewed as serious competitive threats.”

During his April testimony, Zuckerberg pushed back against claims that Facebook bought Instagram to neutralize a threat. In his line of questioning, FTC attorney Daniel Matheson repeatedly brought up emails — many of them more than a decade old — written by Zuckerberg and his associates before and after the acquisition of Instagram.

While acknowledging the documents, Zuckerberg has often sought to downplay the contents, saying he wrote the emails early in the acquisition process and that the notes did not fully capture the scope of his interest in the company. But the case was not about the acquisitions of Instagram and WhatsApp more than a decade ago, which the FTC approved at the time, but about whether Meta holds a monopoly now. Prosecutors, Boasberg wrote in the ruling, could only win if they proved “current or imminent legal violation.”

The FTC’s complaint said Facebook also enacted policies designed to make it difficult for smaller rivals to enter the market and “neutralize perceived competitive threats,” just as the world shifted its attention to mobile devices from desktop computers.

Meta said Tuesday's decision “recognizes that Meta faces fierce competition.”

“Our products are beneficial for people and businesses and exemplify American innovation and economic growth. We look forward to continuing to partner with the Administration and to invest in America,” said Jennifer Newstead, chief legal officer, in a statement.

The social media landscape has changed so much since the FTC filed its lawsuit in 2020, Boasberg wrote, that each time the court examined Meta's apps and competition, they changed. Two opinions to dismiss the case — filed in 2021 and 2022 — didn't even mention popular social video platform TikTok. Today, it “holds center stage as Meta's fiercest rival.”

Quoting the Greek philosopher Heraclitus, “that no man can ever step into the same river twice,” Boasberg said the same is true for the online world of social media as well.

“The landscape that existed only five years ago when the Federal Trade Commission brought this antitrust suit has changed markedly. While it once might have made sense to partition apps into separate markets of social networking and social media, that wall has since broken down,” he wrote.

Emarketer analyst Minda Smiley said Meta's win “is not necessarily surprising considering the lengths it’s gone to in recent years to keep up with TikTok.”

“But from a regulatory standpoint, Meta is far from out of the woods: next year, major social networks will face landmark trials in the US regarding children’s mental health,” she added. "Still, today’s win is surely a boost for the company as it battles criticism and questions over how its massive AI spending will ultimately benefit Meta in the long run.”

Facebook bought Instagram — then a scrappy photo-sharing app with no ads and a small cult following — in 2012. The $1 billion cash and stock purchase price was eye-popping at the time, though the deal’s value fell to $750 million after Facebook’s stock price dipped following its initial public offering in May 2012.

Instagram was the first company Facebook bought and kept running as a separate app. Up until then, Facebook was known for smaller “acqui-hires” — a type of popular Silicon Valley deal in which a company purchases a startup as a way to hire its talented workers, then shuts the acquired company down. Two years later, it did it again with the messaging app WhatsApp, which it purchased for $22 billion.

WhatsApp and Instagram helped Facebook move its business from desktop computers to mobile devices, and to remain popular with younger generations as rivals like Snapchat (which it also tried, but failed, to buy) and TikTok emerged. However, the FTC has a narrow definition of Meta’s competitive market, excluding companies like TikTok, YouTube and Apple’s messaging service from being considered rivals to Instagram and WhatsApp.

Investors didn't appear surprised at the ruling. Shares of the Menlo Park, California-based company were down $1.52 at $600.49 in afternoon trading Tuesday, in line with broader market trends.

Meta CEO Mark Zuckerberg speaks during an event at the Biohub Imaging Institute in Redwood City, Calif., Wednesday, Nov. 5, 2025. (AP Photo/Jeff Chiu)

Meta CEO Mark Zuckerberg speaks during an event at the Biohub Imaging Institute in Redwood City, Calif., Wednesday, Nov. 5, 2025. (AP Photo/Jeff Chiu)

PHILADELPHIA (AP) — Andrew Painter hopped off the mound in excitement in the fifth inning after his 97.2 mph fastball got James Wood to strike out for a second time.

Phillies fans — some groups called themselves Andrew's Painters, others Painter's Painters — waved paintbrushes and erupted in cheers with each strikeout for the rookie pitcher.

Painter delivered a masterpiece in his major league debut.

The 22-year-old Painter — considered to have one of the top arms in any level of baseball — tossed four-hit ball and struck out eight over 5 1/3 innings Tuesday in the Phillies' 3-2 win against the Washington Nationals. Painter tipped his cap to the cheering crowd of 40,709 fans as he left the mound in the sixth after he allowed a one-out single to C.J. Abrams.

“It was awesome,” Painter said. “Crowd showed up tonight. Just kind of soaked all of it. I don't think I could have drawn it up much better.”

He struck out the side in the fifth, walked one and allowed a run when Abrams scored on a run-scoring single by Daylen Lile off reliever Tanner Banks.

Painter wanted to stay in the game and at least finish the inning. Phillies manager Rob Thomson wasn't going to push the right-hander almost 1,000 days since his big league path was elongated by Tommy John surgery.

Thomson asked Painter on the mound visit if he enjoyed his first game.

“He shook his head no,” Thomson said with a laugh. “Then he figured out what I said and shook his head yes.”

Painter received a rousing ovation as he made the long walk from the bullpen to the dugout before the game and kept the fans on their feet when he struck out Wood on a nasty 12-6 curveball to open the game. Painter kept the Nationals flailing at breaking balls and swinging over high hard stuff the rest of the game.

Painter mixed curves, sweepers and sliders with a fastball that nearly touched 100 mph and flashed every bit of greatness that has been predicted of him since he was the 13th overall pick in the 2021 amateur draft and signed for a $3.9 million bonus.

Painter sprinted through Philadelphia’s system in 2022, going 6-2 with a 1.48 ERA in 26 appearances spread across two Class A teams and Double-A Reading.

He hurt his elbow during spring training in 2023 and had Tommy John surgery later that year.

The 6-foot-7 right-hander emerged the top candidate to win the Phillies’ fifth starter job as he attempted to crack the rotation before his 20th birthday. Instead, the injury set him back at least two seasons, and he went 5-8 with a 5.26 ERA during two minor league stops last season.

He’s been deemed good to go and joins a stout rotation that this season will include Zack Wheeler, Aaron Nola, Cristopher Sánchez and Jesús Luzardo.

“We've been waiting a while for this,” Thomson said. “So have our players.”

The two-time reigning NL East champion Phillies gave him needed run support with solo home runs from Kyle Schwarber and Adolis Garcia. Painter left with the Phillies leading 3-0.

“He didn't seem fazed by anything out there," Schwarber said. “That was pretty cool. I mean, even before the game, there's no pacing, no nothing. Just felt like he was mentally prepared for what he was about to do. That's impressive.”

The first outing sure seemed a like preview for even more impressive starts over his career.

“I felt like I was in control of the pace of the game,” Painter said.

Considered the organization's top pitching prospect since Cole Hamels, Painter entered the season ranked No. 26 among all prospects in baseball. Painter gave up seven hits and struck out eight in 11 2/3 innings in spring training this year.

“If we can keep him healthy, this guy's going to be really good for a long time,” Thomson said. “He's going to have a really great career. He's one of those upper-echelon guys. He's got the combination of power and command. The future is bright for him.”

Painter said every part of his game felt in sync, from pregame warmups to keeping his emotions in check while pitching in front of about 40 friends and family in his ticket group. He changed from his No. 24 jersey into a Phillies hoodie and shorts and jogged back onto the field after the final out for photos and hugs with his parents, former coaches and everyone who made the trip.

That included a kiss with his fiancée.

Painter took a knee before he ever threw a regular-season pitch. He posted proposal photos on Instagram in March with his girlfriend, Shelby.

What's more nerve-wracking, proposing or taking the mound?

“I'm not sure,” Painter said with a laugh. “We'll revisit that.”

AP MLB: https://apnews.com/hub/mlb

Philadelphia Phillies manager Rob Thomson, second from left, releases pitcher Andrew Painter, center, during the sixth inning of a baseball game against the Washington Nationals, Tuesday, March 31, 2026, in Philadelphia. (AP Photo/Matt Rourke)

Philadelphia Phillies manager Rob Thomson, second from left, releases pitcher Andrew Painter, center, during the sixth inning of a baseball game against the Washington Nationals, Tuesday, March 31, 2026, in Philadelphia. (AP Photo/Matt Rourke)

Philadelphia Phillies pitcher Andrew Painter greets teammates during the sixth inning of a baseball game against the Washington Nationals, Tuesday, March 31, 2026, in Philadelphia. (AP Photo/Matt Rourke)

Philadelphia Phillies pitcher Andrew Painter greets teammates during the sixth inning of a baseball game against the Washington Nationals, Tuesday, March 31, 2026, in Philadelphia. (AP Photo/Matt Rourke)

Philadelphia Phillies' Andrew Painter pitches during the first inning of a baseball game against the Washington Nationals, Tuesday, March 31, 2026, in Philadelphia. (AP Photo/Matt Rourke)

Philadelphia Phillies' Andrew Painter pitches during the first inning of a baseball game against the Washington Nationals, Tuesday, March 31, 2026, in Philadelphia. (AP Photo/Matt Rourke)

Philadelphia Phillies fans that call themselves "Painter's Painters" pose for a photo as they cheer on rookie Phillies pitcher Andrew Painter during his MLB debut in a baseball game against the Washington Nationals, Tuesday, March 31, 2026, in Philadelphia. (AP Photo/Dan Gelston)

Philadelphia Phillies fans that call themselves "Painter's Painters" pose for a photo as they cheer on rookie Phillies pitcher Andrew Painter during his MLB debut in a baseball game against the Washington Nationals, Tuesday, March 31, 2026, in Philadelphia. (AP Photo/Dan Gelston)

Philadelphia Phillies' Andrew Painter pitches during the first inning of a baseball game against the Washington Nationals, Tuesday, March 31, 2026, in Philadelphia. (AP Photo/Matt Rourke)

Philadelphia Phillies' Andrew Painter pitches during the first inning of a baseball game against the Washington Nationals, Tuesday, March 31, 2026, in Philadelphia. (AP Photo/Matt Rourke)

Philadelphia Phillies' Andrew Painter pitches during the second inning of a baseball game against the Washington Nationals, Tuesday, March 31, 2026, in Philadelphia. (AP Photo/Matt Rourke)

Philadelphia Phillies' Andrew Painter pitches during the second inning of a baseball game against the Washington Nationals, Tuesday, March 31, 2026, in Philadelphia. (AP Photo/Matt Rourke)

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