Social media giant Meta could be forced to sell off Instagram and WhatsApp as a legal battle begins in the US. Owned by billionaire Mark Zuckerberg, the tech business which also owns Facebook bought Instagram in 2012 and WhatsApp in 2014.
An antitrust lawsuit from the US government now alleges that the firm made these transactions to eliminate competition and create a social media monopoly.
Although both acquisitions were approved by the US Federal Trade Commission (FTC) at the time, the competition watchdog has continued to monitor the outcomes. If it wins the case it could force Meta to sell off both Instagram and WhatsApp.
This would mark a major change in the social media sector landscape, experts say. Mike Proulx, vice president research director at analyst firm Forrester, said the case’s possible ramifications, and the ongoing uncertainty around the future of TikTok, could see a “new social media world order” appear.
“The ramifications of this trial, coupled with TikTok’s future in limbo, potentially puts the very core of the social media market at play. No longer would Meta be its centre of gravity.
“We haven’t seen anything like this since around 2006-2011 – social media’s earliest days.
“We’d likely see a renaissance of social media start-ups looking to grab a piece of new social media world order.”
Mr Proulx said that, although Facebook is the original and centre pillar of Meta’s empire, it could struggle to compete as a social media power and may need to redirect its focus.
“Meta is trying to make Facebook cool again, but the company’s social media ‘insurance’ is – and has been for a while – Instagram.
“Without Instagram and WhatsApp, what really is Meta? Could Facebook seriously compete with a stand-alone Instagram? Can Threads monetise at scale? Doubtful. And the company absolutely should not hang its hat on its fledgling metaverse ambitions.
“Its AI (artificial intelligence) glasses are a bright spot, as is its broader AI work.
“That means, in a broken-up Meta, the company’s AI initiatives would usurp its social media roots.”
The trial, which begins in Washington DC on Monday, is expected to last several weeks, with Meta founder Mark Zuckerberg and former chief operating officer Sheryl Sandberg both expected to give evidence.
