Observed Signal · Jan 12, 2022 · Regulation · Source: OnlineMarketing.de · Impact: 2/5 · Sentiment: Neutral
Judge Allows FTC Antitrust Suit Against Meta
A judge has allowed the Federal Trade Commission's revised antitrust complaint against Meta (formerly Facebook) to proceed. The case began in December 2020 when the FTC, joined by 48 of the 50 U.S. states, accused Meta of monopoly power in social networks and of preserving dominance through acquisitions of Instagram and WhatsApp. An August 2021 revised complaint reportedly contains stronger arguments, and the court has now permitted the amended filing to move forward. Meta has previously dismissed the claims as baseless, arguing that its investments in Instagram and WhatsApp have transformed them and benefited competition and users. The ruling advances the antitrust dispute toward formal litigation, though it remains to be seen whether the FTC can prove the charges in court.
Regulatory/legal development involving a major platform (Meta) with potential impact on adtech/competition.
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Key Takeaways & Evidence Grounding
- FTC filed a revised antitrust complaint against Meta in August 2021.
- A judge approved the amended complaint to proceed in court.
- The original 2020 suit was brought by the FTC and 48 of the 50 U.S. states.
- The case centers on Meta's alleged monopoly in social networks and its acquisitions of Instagram and WhatsApp.
- Meta stated the claims are baseless and claimed investments in Instagram and WhatsApp transformed them for the better and were good for competition.
Connected Companies & Entities
1 Entity mappedRelated Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Meta Loses First US Trial Over Youth Safety
A U.S. jury in Santa Fe found Meta — the parent company of Facebook and Instagram — violated two New Mexico consumer protection laws and awarded $375 million in penalties, concluding the company did not do enough to protect young users. The suit was filed in 2023 by New Mexico Attorney General Raúl Torrez, who alleged Meta prioritized profits over safety and concealed risks to children and parents. Meta said it will appeal. A judge, not the jury, will decide in a second phase (scheduled for May) whether Meta’s platforms constitute a public nuisance and whether the company must fund public programs to address harms. More than 40 state attorneys general have filed similar lawsuits against Meta and other platforms.
Threads tests Gems to honor valuable posts daily
Threads is testing a new feature called Gems, which awards up to 25 outstanding conversations daily with a visible diamond badge. The selection is algorithm-based, focusing on originality, timeliness, and authentic discussion, regardless of follower count. Posts or direct replies qualify, but reposts and content cross-posted from Instagram are excluded. The feature is currently limited to public US-based accounts of users aged 18 and older, though the badges are visible globally, including in Germany. Recipients get a notification and can share the badge. Users can hide the label if desired. Initial hints appeared in August via app researcher Alessandro Paluzzi. Threads aims to encourage original and engaging content, with no negative impact on reach for non-recipients.
Meta Bans TikTok Ads on Its Platforms in Multiple Regions
Meta has banned advertising for TikTok on its platforms (Instagram, Facebook, WhatsApp) in several countries, including the USA, Japan, Vietnam, Canada, Egypt, Indonesia, and Thailand. This action, confirmed by Meta spokesperson Chris Sgro, prevents both ByteDance and third-party advertisers from promoting TikTok within Meta's ecosystem. The ban is seen as a competitive move amidst escalating rivalry between Meta, ByteDance, and YouTube. It may also be linked to Meta's recent $16.7 billion settlement with US states over youth safety, which includes conditions that require competitors like TikTok and YouTube to implement similar protective measures, suggesting a strategic pressure tactic to ensure they share the cost and responsibility of child safety initiatives.
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