Meta CEO Mark Zuckerberg defended the company's acquisition strategy in court, testifying as the first witness in a major antitrust trial that could reshape the future of the $1.4 trillion company. The U.S. Federal Trade Commission (FTC) has accused Meta of creating an illegal monopoly by acquiring rivals Instagram and WhatsApp to eliminate competition.

Zuckerberg argued that the purchases of Instagram and WhatsApp were aimed at enhancing innovation and improving user experience. He acknowledged that the platform's focus has shifted more toward content discovery beyond personal connections, but emphasized that relationships with friends and family remain central to Meta's mission. If the case succeeds, Meta could be forced to sell Instagram and WhatsApp, marking one of the most significant antitrust actions against a tech company in decades.

The FTC’s lead attorney, Daniel Matheson, argued in his opening statement that Meta's dominance through Facebook, Instagram, and WhatsApp has left consumers with limited choices. He claimed that the acquisitions were intended to prevent competition, effectively dominating the “personal social networking” market. Matheson stated that Meta’s strategy has been to neutralize competitors rather than compete with them, leaving users with no reasonable alternatives.

Meta's legal team pushed back, arguing that the social networking market is broader than the FTC suggests and that the company competes with a variety of platforms like TikTok, Snapchat, YouTube, and Apple’s iMessage. They also pointed out that both Instagram and WhatsApp were approved by regulators when acquired. They criticized the FTC’s case as relying heavily on old emails from a decade ago.

One crucial piece of evidence for the FTC is a 2012 email in which Zuckerberg discussed buying Instagram to "neutralize a competitor." Zuckerberg acknowledged these emails but insisted they were part of broader discussions and misinterpreted. He claimed that Meta made significant investments in Instagram and WhatsApp after their acquisitions, supporting their growth. The FTC also argued that Meta intentionally slowed Instagram's development after the acquisition to protect Facebook's market position. Matheson labeled this a "rational business decision" from Meta's perspective, but it contradicted antitrust law’s goal of preserving competition.

The trial continues with Zuckerberg scheduled to return to the stand. Additional testimony from figures like former COO Sheryl Sandberg and Instagram co-founder Kevin Systrom is expected in the coming weeks. If the court rules in favor of the FTC, Meta could be forced to undo its acquisitions of Instagram and WhatsApp, disrupting the company’s operations and possibly affecting its advertising revenue, with Instagram alone projected to contribute over half of Meta’s U.S. ad revenue by 2025. The trial, overseen by U.S. District Judge James Boasberg, is expected to last for eight weeks, with several high-profile figures from Meta and other tech companies scheduled to testify.