Meta Chief Executive Mark Zuckerberg returned to Washington this week to testify at a groundbreaking trial that allowed the world’s largest social network to force them to destroy Instagram and WhatsApp.

The outcome of the high stakes incident between Meta and the Federal Trade Commission can unlock some of the company’s most lucrative acquisitions, disrupt the advertising business and reshape the future of social media.

The highly viewed antitrust test also comes as Zuckerberg and other tech executives are trying to make a curry favor with the Trump administration.

“This case can be done either way,” said Rebecca Ho Allensworth, a professor at Vanderbilt Law School who studies antitrust law. “There are some strengths in government cases, and there are also major weaknesses that Meta can expect to truly exploit.”

Meta says it faces competition from apps like Tiktok and YouTube, but according to the FTC, video apps are different from personal social networking services.

Meta and FTC did not respond to requests for comment. Over 3 billion people use one of Meta’s apps every day, including Instagram and WhatsApp.

Here’s what you need to know about legal showdowns:

What are the antitrust cases of FTC against meta?

The FTC claims that Meta maintains the exclusive rights of US personal social networking services by illegally acquiring rivals such as Instagram and messaging app WhatsApp.

Meta’s “better to buy than competition” strategy has curtailed innovation and harmed consumers and advertisers because they have fewer options, the agency said in 2021 Corrected complaints To Facebook, it later rebranded itself as a meta.

The FTC and Meta clashed over how governments define relevant markets. The agency has an app that personal social networking services include apps such as Snapchat and Mewe, but is now X for apps that are not Tiktok, YouTube or Twitter.

Still, winning the FTC will be a challenge, said Jennifer Huddleston, a senior fellow in technology policy at the Cateau Institute, Libertarian think tank.

“We’re trying to show that Facebook has an exclusive power and what it’s defined as a personal social network, but that’s not what consumers experience when they watch social media,” she said.

What is Meta’s reaction?

Meta called the FTC incident against the company “weak” and “ignoring reality.”

Social networks are Blog post Competing with apps such as YouTube and Tiktok.

Allowing people to connect with family and friends is a top priority for Meta, but Zuckerberg told the court that “we’ve always told us it’s a service where we can discover and learn what’s going on in the world.” Bloomberg It has been reported.

The company also said billions of dollars in investments in Instagram and WhatsApp will help drive their popularity. If Meta is forced to sell Instagram and WhatsApp, the government will send a message to businesses that “the transaction has never been final” to date.

What is at risk for the meta?

Force Meta to sell Instagram and WhatsApp will be a major blow to the business, analysts say.

“We’re looking forward to seeing you in the future,” said Jasmine Enberg, vice president and principal analyst at Emarketer, a social media cover. “Facebook hasn’t been a place where cool college students stroll around for a long time.”

According to Emarketer, Instagram’s US ad revenue is expected to reach $37.677 billion this year, accounting for about half of Meta’s advertising revenue nationwide. While WhatsApp makes up a small portion of Meta’s revenue, businesses use messaging apps to drive sales and customer support.

Both apps have a huge audience. Instagram has over 2 billion active users worldwide each month. WhatsApp has over 2 billion users worldwide, with people not only in the US but across developing countries.

Facebook bought Instagram in 2012 for around $1 billion. Social Network purchased WhatsApp in 2014 for $19 billion.

How does this affect the social media situation?

Some analysts say that breaking up Meta will open doors for more rivals.

“We’re committed to providing a range of research and advisory firms,” ​​said Mike Prucks, vice president and research director at Forester, a Massachusetts-based research and advisory firm.

Others pointed out that moving people to another social media app is a difficult battle.

“That’s a big question mark,” Enberg said. “The reality is that starting or launching a social app is not easy, and pinning it is even more difficult.”

Isn’t this Déjàvu from Zuckerberg?

yes. Zuckerberg has played head-to-head with both the FTC and lawmakers in the past. In 2022, Zuckerberg testified in A case The FTC attempted to block the purchase of Los Angeles-based meta within Unlimited, the company that created the VR Fitness App Supernatural. A California judge sided with Meta in 2023, allowing social media companies to close their transactions.

Zuckerberg also testified at an intellectual property trial in 2017 that Facebook accused the purchased Oculus of stealing technology from Zenimax Media to create a virtual reality headset. The ju judge initially ordered Facebook to pay Zenimax $500 million, but the company appealed and the lawsuit was ultimately settled.

The 40-year-old tech giant has also appeared in front of Congress and faces questions from lawmakers about data privacy and child safety concerns.

Does Zuckerberg’s Trump’s attempt to help Meta help Meta?

The FTC’s anti-trust case began during President Trump’s first term. In 2020, the agency sued Facebook. A federal court dismissed the case after failing to provide enough facts to prove that the agency holds a personal social networking monopoly. During the Biden administration in 2021, the FTC filed an amended complaint.

Zuckerberg, who had previously criticized Trump in his first term, is trying to correct his relationship with the president.

“It’s clear that Zuckerberg is trying to do something he has worthy of, but so far, it seems it’s not working out as the case has progressed,” says Allensworth.

What’s next?

US District Judge James Boasberg is primarily on the case, and the trial is expected to last several weeks. Meta executives and other witnesses may be called to testify at trial.