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Zuckerberg In The Hot Seat: Landmark Trial Could Break Up Meta’s Empire

A high-stakes antitrust trial that could reshape the future of Big Tech kicks off this week in Washington, putting Meta CEO Mark Zuckerberg—and two of Silicon Valley’s most iconic acquisitions—under the microscope.

At the heart of the case is a bold accusation: Meta’s $1 billion purchase of Instagram in 2012, followed by its $19 billion acquisition of WhatsApp in 2014, wasn’t about innovation, but domination. The Federal Trade Commission (FTC) argues these deals were designed to snuff out competition, securing Meta’s monopoly over the social media landscape.

Although the FTC initially signed off on both deals, it kept a close watch. More than a decade later, it wants Zuckerberg to unwind them. If the FTC wins, Meta could be forced to spin off Instagram and WhatsApp—an outcome with massive implications for the tech industry.

Meta, unsurprisingly, disagrees. The company has long maintained that its stewardship improved Instagram and WhatsApp, boosting user experience and accelerating growth. Insiders say Meta’s legal team will lean heavily on that narrative.

But intent may be key. And that’s where Zuckerberg’s own words could come back to haunt him. “It’s better to buy than compete,” he reportedly wrote in internal emails—lines that could become a central theme in the courtroom.

“The FTC argues that Instagram was a rising competitive threat, and Meta neutralized it,” says Rebecca Haw Allensworth, an antitrust expert at Vanderbilt Law School. “Zuckerberg’s statements might be the strongest evidence they have.”

Meta will likely argue that consumer benefit—not executive emails—should determine the case. “They’ll say Instagram thrived because of the merger,” Allensworth adds. “That’s the hill they’ll die on.”

Both Zuckerberg and former COO Sheryl Sandberg are expected to testify in a trial that may stretch for weeks, if not longer.

Politics At Play

Originally filed during Donald Trump’s presidency, the case has taken on new political weight as the former president eyes a return to the White House. Zuckerberg personally lobbied Trump to drop the lawsuit. Asked about the report, Meta sidestepped specifics, issuing a broadside against the FTC instead.

“The FTC’s lawsuits against Meta defy reality,” a spokesperson said. “Over a decade after greenlighting these acquisitions, the agency is now suggesting no deal is ever truly final.”

Zuckerberg’s relationship with Trump has seen whiplash-inducing shifts. Once strained—Trump was banned from Meta platforms after the Capitol riot in 2021—the ties have since warmed. Meta donated $1 million to Trump’s inauguration, and in January, UFC president and Trump loyalist Dana White joined Meta’s board. Around the same time, the company also announced it was phasing out independent fact-checkers.

A Test For The FTC

Behind the courtroom drama lies a broader institutional battle. In March, Trump dismissed two Democratic FTC commissioners, Rebecca Kelly Slaughter and Alvaro Bedoya, tilting the five-member commission sharply to the right. Until recently, only two seats were filled—both by Republicans. Another Republican was confirmed last week, further altering the balance.

Slaughter and Bedoya, who are now suing to be reinstated, claim the firings were politically motivated. “The message was clear,” Slaughter told. “If you don’t toe the line, you’re next.”

The timing has raised concerns that political interference could taint the case. “I hope that the FTC remains independent,” Bedoya said.

FTC Chair Andrew Ferguson, a Trump appointee, insists he’ll “obey lawful orders” but doesn’t expect to be asked to drop the case. Still, his recent remarks—questioning whether independent regulators are good for democracy—have only added fuel to the fire.

Despite these headwinds, the FTC continues to position itself as a key enforcer in the fight against corporate overreach, recently returning millions to fraud victims and cracking down on exploitative subscription models.

Now, with the Meta trial underway, the agency faces a defining test—not just of its legal argument, but of its ability to hold one of the most powerful companies in the world to account.

ECB Flags Risks Linked To High-Valuation Technology Stocks

Overview Of The Analysis

An analysis published by the European Central Bank (ECB) examines the factors influencing investor exposure to highly valued equity markets, particularly in the technology and artificial intelligence sectors. Prepared by ECB economists Paolo Alberto Baudino, Federica Bosio, Daniel Dieckelmann, Christoph Kaufmann and Maria Leonor Puga, the study forms part of the institution’s latest financial stability review.

Rising Valuations And Shifting Investor Exposure

According to the report, equity valuations remain elevated, particularly among technology and AI-related companies. Over the past decade, euro area investors have increased their exposure to these markets. While overall equity holdings have doubled during that period, investments in U.S. equities have increased fourfold, supported by rising valuations and continued capital inflows.

Monetary Policy And Geopolitical Influences

Investment funds remain the largest holders of equities in the euro area and have significant exposure to U.S. stocks. ECB researchers found that these funds are particularly responsive to changes in macroeconomic conditions and investor sentiment. Interest rate cuts introduced in the United States from late 2024 supported capital flows into equity markets, while geopolitical uncertainty and weaker risk appetite weighed on investor confidence.

Risk Exposure And Economic Implications

The report also highlights the sensitivity of U.S. technology stocks to changes in monetary policy and economic conditions. A shift in expectations surrounding artificial intelligence adoption or future productivity gains could lead to lower valuations and broader market adjustments, according to the ECB. Such developments could affect investment funds with concentrated exposure to highly valued technology stocks and increase the risk of market volatility.

Policy Considerations And Future Outlook

Growing household participation in financial markets has increased the importance of monitoring these developments. Exposure now extends beyond direct share ownership through investment products such as pension funds and unit-linked insurance schemes. Continued monitoring of capital flows and valuation trends remains important for assessing potential risks to financial stability and the broader economy, the ECB said.

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