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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.

SoftBank Shares Tumble Amid Tech Profit Taking And High-Risk AI Investments

Market Sell-Off And Profit Taking

SoftBank Group’s share price plunged over 11% following an overnight sell-off in the U.S. market, as broader profit taking in the technology sector weighed on investor sentiment. Major Asian technology players, including TSMC and Foxconn, experienced similar declines, reflecting a cautious approach among investors despite recent gains.

High-Stakes AI Investments

Despite this short-term volatility, SoftBank’s year-to-date share price surge of approximately 70% is largely fueled by robust investor enthusiasm around its high-risk bets on artificial intelligence. Concerns persist over these aggressive investments, even as the market continues to rally on the promise of AI-driven returns.

Global Technology Landscape

In the broader market, South Korean giants such as Samsung and SK Hynix witnessed modest declines of 1.25% and 2.75%, respectively, following profit taking after surpassing key market valuations. Similarly, overnight in the U.S., semiconductor leader Nvidia fell 3.62%, while Alphabet and Amazon saw declines of 0.79% and 2.5%, respectively.

Long-Term Vision Versus Short-Term Focus

SoftBank CEO Masayoshi Son has been vocal about the transformative potential of artificial intelligence, predicting that the AI revolution could be 50 times larger than the dot-com boom of the 2000s. However, as noted in a recent investor note by Deutsche Bank analyst Peter Milliken, market enthusiasm appears narrowly fixated on short-term momentum rather than a detailed long-term roadmap.

Strategic Asset Reallocation

Adding another layer to the unfolding narrative, SoftBank recently divested a 3.25% stake in Indian eyewear maker Lenskart through its affiliate SVF II Lightbulb (Cayman). The transaction, which involved selling 56.5 million shares at 508.55 Indian rupees each (approximately $5.32 per share), valued the deal at nearly 28.73 billion rupees. Following the sale, SoftBank’s shares traded at 7,377 yen, marking an 11.3% drop.

This dynamic environment underscores the challenges of balancing aggressive, innovation-driven investments with the need for prudent risk management in volatile markets.

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