US regulator appeals Meta's court victory in monopoly case

"Our position has not changed. Meta violated our antitrust laws when it acquired Instagram and WhatsApp," Joe Simonson, the FTC's director of public affairs, told reporters.

"Consequently, American consumers have suffered from that monopoly," he added.

The agency filed a notice of appeal to the DC Circuit Court, beginning a long process that could make its way to the Supreme Court.

In response to the appeal, a Meta spokesperson said the court's decision to dismiss the FTC's arguments was "correct, and recognizes the fierce competition we face."

"We will remain focused on innovating and investing in America," the Meta spokesperson added.

US District Judge James Boasberg's November ruling delivered a major victory to Meta, ending a legal battle launched in 2020 over the company's 2012 Instagram and 2014 WhatsApp acquisitions.

Boasberg concluded that Meta faces sufficient competition from rivals TikTok and YouTube to prevent it from exercising monopoly power.

"Meta holds no monopoly in the relevant market," the judge wrote, noting that Facebook and Instagram now primarily show users algorithm-recommended short videos nearly identical to TikTok's format.

The court cited data showing Americans spend only 17 percent of their Facebook time viewing friends' content and just seven percent on Instagram, with users predominantly watching "Reels" -- short videos from strangers.

A senior FTC official said the judge took "a very odd path" by basing his ruling solely on Meta's market position at the time of trial instead of over a longer period.

This approach "was a fundamental error that let him just sweep its misconduct under the rug," the official said, who requested anonymity because he was not authorized to discuss the issue publicly.

Boasberg's ruling marked another setback for US antitrust enforcers pursuing aggressive action against Big Tech, with mixed results in court.

The government has launched five major cases against tech giants in recent years, including two against Google and suits against Apple and Amazon.

In September, a different judge rejected a government bid to break up Google after finding the search giant acted as an illegal monopoly. Google appealed that ruling last week.