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2025-05-17 03:54:53 - Translate -

Meta is trying to get its antitrust case thrown out in the middle of the trial

The FTC just rested its case following weeks of testimony in a landmark antitrust case against Meta. But before Meta can begin its defense, the company's lawyers have opted for another move: asking the judge to throw out the case entirely.
The company filed a motion on Thursday asking US District judge James Boasberg to toss out the FTC's case, arguing that the regulator has not proved that Meta acted anticompetitively. "Meta has made two promising mobile apps with uncertain prospect: two of the most successful apps in the world, enjoyed by approximately half of the planet's populationon demand, in unlimited quantities, all for free," the filing says, "The FTC has not carried its burden to prove that Meta 'is currently violating the antitrust laws.'"
The company's reasoning is similar to past arguments it's made about the FTC's case. Meta has said that Instagram and WhatsApp were able to grow to one-billion-user services because of the company's investments. The company also takes issue with the FTC's claim that there is a lack of competition for "personal social networking services."So far, the month-long trial has seen a number of prominent current and former Meta executives take the stand, including CEO Mark Zuckerberg, former COO Sheryl Sandberg and Instagram cofounder Kevin Systrom. Their testimony has revealed new details about the inner workings of the social media company and its tactics to stay ahead of potential competitors.This article originally appeared on Engadget at
#meta #trying #get #its #antitrust

Meta is trying to get its antitrust case thrown out in the middle of the trial
The FTC just rested its case following weeks of testimony in a landmark antitrust case against Meta. But before Meta can begin its defense, the company's lawyers have opted for another move: asking the judge to throw out the case entirely. The company filed a motion on Thursday asking US District judge James Boasberg to toss out the FTC's case, arguing that the regulator has not proved that Meta acted anticompetitively. "Meta has made two promising mobile apps with uncertain prospect: two of the most successful apps in the world, enjoyed by approximately half of the planet's populationon demand, in unlimited quantities, all for free," the filing says, "The FTC has not carried its burden to prove that Meta 'is currently violating the antitrust laws.'" The company's reasoning is similar to past arguments it's made about the FTC's case. Meta has said that Instagram and WhatsApp were able to grow to one-billion-user services because of the company's investments. The company also takes issue with the FTC's claim that there is a lack of competition for "personal social networking services."So far, the month-long trial has seen a number of prominent current and former Meta executives take the stand, including CEO Mark Zuckerberg, former COO Sheryl Sandberg and Instagram cofounder Kevin Systrom. Their testimony has revealed new details about the inner workings of the social media company and its tactics to stay ahead of potential competitors.This article originally appeared on Engadget at #meta #trying #get #its #antitrust

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Meta is trying to get its antitrust case thrown out in the middle of the trial
The FTC just rested its case following weeks of testimony in a landmark antitrust case against Meta. But before Meta can begin its defense, the company's lawyers have opted for another move: asking the judge to throw out the case entirely. The company filed a motion on Thursday asking US District judge James Boasberg to toss out the FTC's case, arguing that the regulator has not proved that Meta acted anticompetitively. "Meta has made two promising mobile apps with uncertain prospect: two of the most successful apps in the world, enjoyed by approximately half of the planet's population (including hundreds of millions of U.S. consumers) on demand, in unlimited quantities, all for free," the filing says, "The FTC has not carried its burden to prove that Meta 'is currently violating the antitrust laws.'" The company's reasoning is similar to past arguments it's made about the FTC's case. Meta has said that Instagram and WhatsApp were able to grow to one-billion-user services because of the company's investments. The company also takes issue with the FTC's claim that there is a lack of competition for "personal social networking services." (The FTC has argued that Meta's only competitors for social networking are Snapchat and MeWe, a small privacy-focused social app that runs on decentralized protocols.) So far, the month-long trial has seen a number of prominent current and former Meta executives take the stand, including CEO Mark Zuckerberg, former COO Sheryl Sandberg and Instagram cofounder Kevin Systrom. Their testimony has revealed new details about the inner workings of the social media company and its tactics to stay ahead of potential competitors.This article originally appeared on Engadget at https://www.engadget.com/big-tech/meta-is-trying-to-get-its-antitrust-case-thrown-out-in-the-middle-of-the-trial-204656979.html?src=rss

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2025-05-16 16:35:35 - Translate -

Meta argues enshittification isn’t real in bid to toss FTC monopoly trial

Seeking closure

Meta argues enshittification isn’t real in bid to toss FTC monopoly trial

How many ads is too many? Meta denies ad load harms users in bid to end trial early.

Ashley Belanger

–

May 16, 2025 12:01 pm

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13

Mark Zuckerberg, chief executive officer of Meta Platforms Inc., departs federal court in Washington, DC, US, on Wednesday, April 16, 2025.

Credit:

Bloomberg / Contributor | Bloomberg

Mark Zuckerberg, chief executive officer of Meta Platforms Inc., departs federal court in Washington, DC, US, on Wednesday, April 16, 2025.

Credit:

Bloomberg / Contributor | Bloomberg

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Meta thinks there's no reason to carry on with its defense after the Federal Trade Commission closed its monopoly case, and the company has moved to end the trial early by claiming that the FTC utterly failed to prove its case.
"The FTC has no proof that Meta has monopoly power," Meta's motion for judgment filed Thursday said, "and therefore the court should rule in favor of Meta."
According to Meta, the FTC failed to show evidence that "the overall quality of Meta’s apps has declined" or that the company shows too many ads to users. Meta says that's "fatal" to the FTC's case that the company wielded monopoly power to pursue more ad revenue while degrading user experience over time. And on top of allegedly showing no evidence of "ad load, privacy, integrity, and features" degradation on Meta apps, Meta argued there's no precedent for an antitrust claim rooted in this alleged harm.
"Meta knows of no case finding monopoly power based solely on a claimed degradation in product quality, and the FTC has cited none," Meta argued.
Meta has maintained throughout the trial that its users actually like seeing ads. In the company's recent motion, Meta argued that the FTC provided no insights into what "the right number of ads" should be, "let alone" provide proof that "Meta showed more ads" than it would in a competitive market where users could easily switch services if ad load became overwhelming.

Further, Meta argued that the FTC did not show evidence that users sharing friends-and-family content were shown more ads. Meta noted that it "does not profit by showing more ads to users who do not click on them," so it only shows more ads to users who click ads.
Meta also insisted that there's "nothing but speculation" showing that Instagram or WhatsApp would have been better off or grown into rivals had Meta not acquired them.
The company claimed that without Meta's resources, Instagram may have died off. Meta noted that Instagram co-founder Kevin Systrom testified that his app was “pretty broken and duct-taped” together, making it "vulnerable to spam" before Meta bought it.
Rather than enshittification, what Meta did to Instagram could be considered "a consumer-welfare bonanza," Meta argued, while dismissing "smoking gun" emails from Mark Zuckerberg discussing buying Instagram to bury it as "legally irrelevant."
Dismissing these as "a few dated emails," Meta argued that "efforts to litigate Mr. Zuckerberg’s state of mind before the acquisition in 2012 are pointless."
"What matters is what Meta did," Meta argued, which was pump Instagram with resources that allowed it "to 'thrive'—adding many new features, attracting hundreds of millions and then billions of users, and monetizing with great success."
In the case of WhatsApp, Meta argued that nobody thinks WhatsApp had any intention to pivot to social media when the founders testified that their goal was to never add social features, preferring to offer a simple, clean messaging app. And Meta disputed any claim that it feared Google might buy WhatsApp as the basis for creating a Facebook rival, arguing that "the sole Meta witness tolearn of Google’s acquisition efforts testified that he did not have that worry."

Meta hopes to avoid breakup
The monopoly trial is supposed to run through June, but Meta is hoping that US District Judge James Boasberg will agree that the FTC has failed to make its case and end the trial early.
Granting Meta's motion would remove any threat of a breakup of its family of apps while also letting Meta off the hook of raising its defense. This could spare Meta any potential further embarrassment of having its founder's unvarnished internal emails picked apart in public.
For Boasberg, it will likely come down to the FTC's market definition alleging that Meta dominates and forecloses rivals in a personal social networking services market that Meta says is a "fiction." If Boasberg buys Meta's argument that TikTok is actually Meta's biggest rival—and not Snap or MeWe—Meta could have an easier time shutting down the case.
The FTC has not yet commented on the motion, but the agency was determined to go through with the trial, rejecting a reportedly billion settlement offer from Meta. Holding out for billion, the FTC appeared confident in presenting its case, arguing that TikTok—which attracts users broadcasting to strangers—is not a substitute for Meta's apps, which are designed to connect friends and family. The FTC likely expects to see the trial through to the end, when the agency, in a win, will likely try to force Meta to spin off Instagram and WhatsApp.
That's not necessarily an inevitability in a Meta loss, though. If Boasberg denies Meta's motion, Meta will have to present more evidence and deliver closing arguments before a second phase of the trial would litigate potential remedies.

Ashley Belanger
Senior Policy Reporter

Ashley Belanger
Senior Policy Reporter

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

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#meta #argues #enshittification #isnt #real

Meta argues enshittification isn’t real in bid to toss FTC monopoly trial
Seeking closure Meta argues enshittification isn’t real in bid to toss FTC monopoly trial How many ads is too many? Meta denies ad load harms users in bid to end trial early. Ashley Belanger – May 16, 2025 12:01 pm | 13 Mark Zuckerberg, chief executive officer of Meta Platforms Inc., departs federal court in Washington, DC, US, on Wednesday, April 16, 2025. Credit: Bloomberg / Contributor | Bloomberg Mark Zuckerberg, chief executive officer of Meta Platforms Inc., departs federal court in Washington, DC, US, on Wednesday, April 16, 2025. Credit: Bloomberg / Contributor | Bloomberg Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only   Learn more Meta thinks there's no reason to carry on with its defense after the Federal Trade Commission closed its monopoly case, and the company has moved to end the trial early by claiming that the FTC utterly failed to prove its case. "The FTC has no proof that Meta has monopoly power," Meta's motion for judgment filed Thursday said, "and therefore the court should rule in favor of Meta." According to Meta, the FTC failed to show evidence that "the overall quality of Meta’s apps has declined" or that the company shows too many ads to users. Meta says that's "fatal" to the FTC's case that the company wielded monopoly power to pursue more ad revenue while degrading user experience over time. And on top of allegedly showing no evidence of "ad load, privacy, integrity, and features" degradation on Meta apps, Meta argued there's no precedent for an antitrust claim rooted in this alleged harm. "Meta knows of no case finding monopoly power based solely on a claimed degradation in product quality, and the FTC has cited none," Meta argued. Meta has maintained throughout the trial that its users actually like seeing ads. In the company's recent motion, Meta argued that the FTC provided no insights into what "the right number of ads" should be, "let alone" provide proof that "Meta showed more ads" than it would in a competitive market where users could easily switch services if ad load became overwhelming. Further, Meta argued that the FTC did not show evidence that users sharing friends-and-family content were shown more ads. Meta noted that it "does not profit by showing more ads to users who do not click on them," so it only shows more ads to users who click ads. Meta also insisted that there's "nothing but speculation" showing that Instagram or WhatsApp would have been better off or grown into rivals had Meta not acquired them. The company claimed that without Meta's resources, Instagram may have died off. Meta noted that Instagram co-founder Kevin Systrom testified that his app was “pretty broken and duct-taped” together, making it "vulnerable to spam" before Meta bought it. Rather than enshittification, what Meta did to Instagram could be considered "a consumer-welfare bonanza," Meta argued, while dismissing "smoking gun" emails from Mark Zuckerberg discussing buying Instagram to bury it as "legally irrelevant." Dismissing these as "a few dated emails," Meta argued that "efforts to litigate Mr. Zuckerberg’s state of mind before the acquisition in 2012 are pointless." "What matters is what Meta did," Meta argued, which was pump Instagram with resources that allowed it "to 'thrive'—adding many new features, attracting hundreds of millions and then billions of users, and monetizing with great success." In the case of WhatsApp, Meta argued that nobody thinks WhatsApp had any intention to pivot to social media when the founders testified that their goal was to never add social features, preferring to offer a simple, clean messaging app. And Meta disputed any claim that it feared Google might buy WhatsApp as the basis for creating a Facebook rival, arguing that "the sole Meta witness tolearn of Google’s acquisition efforts testified that he did not have that worry." Meta hopes to avoid breakup The monopoly trial is supposed to run through June, but Meta is hoping that US District Judge James Boasberg will agree that the FTC has failed to make its case and end the trial early. Granting Meta's motion would remove any threat of a breakup of its family of apps while also letting Meta off the hook of raising its defense. This could spare Meta any potential further embarrassment of having its founder's unvarnished internal emails picked apart in public. For Boasberg, it will likely come down to the FTC's market definition alleging that Meta dominates and forecloses rivals in a personal social networking services market that Meta says is a "fiction." If Boasberg buys Meta's argument that TikTok is actually Meta's biggest rival—and not Snap or MeWe—Meta could have an easier time shutting down the case. The FTC has not yet commented on the motion, but the agency was determined to go through with the trial, rejecting a reportedly billion settlement offer from Meta. Holding out for billion, the FTC appeared confident in presenting its case, arguing that TikTok—which attracts users broadcasting to strangers—is not a substitute for Meta's apps, which are designed to connect friends and family. The FTC likely expects to see the trial through to the end, when the agency, in a win, will likely try to force Meta to spin off Instagram and WhatsApp. That's not necessarily an inevitability in a Meta loss, though. If Boasberg denies Meta's motion, Meta will have to present more evidence and deliver closing arguments before a second phase of the trial would litigate potential remedies. Ashley Belanger Senior Policy Reporter Ashley Belanger Senior Policy Reporter Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience. 13 Comments #meta #argues #enshittification #isnt #real

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Meta argues enshittification isn’t real in bid to toss FTC monopoly trial
Seeking closure Meta argues enshittification isn’t real in bid to toss FTC monopoly trial How many ads is too many? Meta denies ad load harms users in bid to end trial early. Ashley Belanger – May 16, 2025 12:01 pm | 13 Mark Zuckerberg, chief executive officer of Meta Platforms Inc., departs federal court in Washington, DC, US, on Wednesday, April 16, 2025. Credit: Bloomberg / Contributor | Bloomberg Mark Zuckerberg, chief executive officer of Meta Platforms Inc., departs federal court in Washington, DC, US, on Wednesday, April 16, 2025. Credit: Bloomberg / Contributor | Bloomberg Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only   Learn more Meta thinks there's no reason to carry on with its defense after the Federal Trade Commission closed its monopoly case, and the company has moved to end the trial early by claiming that the FTC utterly failed to prove its case. "The FTC has no proof that Meta has monopoly power," Meta's motion for judgment filed Thursday said, "and therefore the court should rule in favor of Meta." According to Meta, the FTC failed to show evidence that "the overall quality of Meta’s apps has declined" or that the company shows too many ads to users. Meta says that's "fatal" to the FTC's case that the company wielded monopoly power to pursue more ad revenue while degrading user experience over time (an Internet trend known as "enshittification"). And on top of allegedly showing no evidence of "ad load, privacy, integrity, and features" degradation on Meta apps, Meta argued there's no precedent for an antitrust claim rooted in this alleged harm. "Meta knows of no case finding monopoly power based solely on a claimed degradation in product quality, and the FTC has cited none," Meta argued. Meta has maintained throughout the trial that its users actually like seeing ads. In the company's recent motion, Meta argued that the FTC provided no insights into what "the right number of ads" should be, "let alone" provide proof that "Meta showed more ads" than it would in a competitive market where users could easily switch services if ad load became overwhelming. Further, Meta argued that the FTC did not show evidence that users sharing friends-and-family content were shown more ads. Meta noted that it "does not profit by showing more ads to users who do not click on them," so it only shows more ads to users who click ads. Meta also insisted that there's "nothing but speculation" showing that Instagram or WhatsApp would have been better off or grown into rivals had Meta not acquired them. The company claimed that without Meta's resources, Instagram may have died off. Meta noted that Instagram co-founder Kevin Systrom testified that his app was “pretty broken and duct-taped” together, making it "vulnerable to spam" before Meta bought it. Rather than enshittification, what Meta did to Instagram could be considered "a consumer-welfare bonanza," Meta argued, while dismissing "smoking gun" emails from Mark Zuckerberg discussing buying Instagram to bury it as "legally irrelevant." Dismissing these as "a few dated emails," Meta argued that "efforts to litigate Mr. Zuckerberg’s state of mind before the acquisition in 2012 are pointless." "What matters is what Meta did," Meta argued, which was pump Instagram with resources that allowed it "to 'thrive'—adding many new features, attracting hundreds of millions and then billions of users, and monetizing with great success." In the case of WhatsApp, Meta argued that nobody thinks WhatsApp had any intention to pivot to social media when the founders testified that their goal was to never add social features, preferring to offer a simple, clean messaging app. And Meta disputed any claim that it feared Google might buy WhatsApp as the basis for creating a Facebook rival, arguing that "the sole Meta witness to (supposedly) learn of Google’s acquisition efforts testified that he did not have that worry." Meta hopes to avoid breakup The monopoly trial is supposed to run through June, but Meta is hoping that US District Judge James Boasberg will agree that the FTC has failed to make its case and end the trial early. Granting Meta's motion would remove any threat of a breakup of its family of apps while also letting Meta off the hook of raising its defense. This could spare Meta any potential further embarrassment of having its founder's unvarnished internal emails picked apart in public. For Boasberg, it will likely come down to the FTC's market definition alleging that Meta dominates and forecloses rivals in a personal social networking services market that Meta says is a "fiction." If Boasberg buys Meta's argument that TikTok is actually Meta's biggest rival—and not Snap or MeWe—Meta could have an easier time shutting down the case. The FTC has not yet commented on the motion, but the agency was determined to go through with the trial, rejecting a reportedly $1 billion settlement offer from Meta. Holding out for $30 billion, the FTC appeared confident in presenting its case, arguing that TikTok—which attracts users broadcasting to strangers—is not a substitute for Meta's apps, which are designed to connect friends and family. The FTC likely expects to see the trial through to the end, when the agency, in a win, will likely try to force Meta to spin off Instagram and WhatsApp. That's not necessarily an inevitability in a Meta loss, though. If Boasberg denies Meta's motion, Meta will have to present more evidence and deliver closing arguments before a second phase of the trial would litigate potential remedies. Ashley Belanger Senior Policy Reporter Ashley Belanger Senior Policy Reporter Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience. 13 Comments

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2025-05-16 01:25:42 - Translate -

Meta asks judge to throw out antitrust case mid-trial

Meta has filed a motion for judgment on the antitrust case it’s currently fighting in court. The motion argues that the Federal Trade Commissionhas failed to produce any evidence that Meta unlawfully monopolized part of the social networking market, something the government argues it did through its acquisitions of Instagram and WhatsApp.

The filing was submitted this evening, shortly after the FTC rested its case in a protracted trial before DC District Court Judge James Boasberg. “After five weeks of trial, it is clear that the FTC has failed to meet the legal standard required under antitrust law,” said Meta spokesperson Christopher Sgro. “Regardless, we will present our case to show what every 17-year-old in the world knows: Instagram competes with TikTok. The FTC spent tens of millions of taxpayer dollars bringing a weak case with a market definition that ignores reality.”

A judgment on partial findings asks a judge to consider a case’s merits before it has been fully argued in court, attempting to speed its resolution. The trial is still currently scheduled to proceed, with Meta launching into its defense against the FTC’s allegations, but the filing offers a preview of its case.

As Meta’s lawyers have done in cross-examination, it takes aim at the agency’s description of Meta monopolizing a “personal social networking services” market that people use to share information with family and friends. It argues that the FTC has failed to demonstrate Meta reduced the quality of its servicesor that it bought Instagram to neutralize a potential rival.

The FTC has made its case with testimony from several high-profile players in Meta’s businesses, including Instagram’s co-founder Kevin Systrom — who aired complaints about Meta’s handling of his company — and its current head, Adam Mosseri, who offered a more optimistic take. Meta has countered by emphasizing the company’s persistent struggles against social networks that the FTC doesn’t consider full competitors, particularly TikTok, which, in the war for those aforementioned 17-year-olds’ attention, Meta portrays as a constant scourge.
#meta #asks #judge #throw #out

Meta asks judge to throw out antitrust case mid-trial
Meta has filed a motion for judgment on the antitrust case it’s currently fighting in court. The motion argues that the Federal Trade Commissionhas failed to produce any evidence that Meta unlawfully monopolized part of the social networking market, something the government argues it did through its acquisitions of Instagram and WhatsApp. The filing was submitted this evening, shortly after the FTC rested its case in a protracted trial before DC District Court Judge James Boasberg. “After five weeks of trial, it is clear that the FTC has failed to meet the legal standard required under antitrust law,” said Meta spokesperson Christopher Sgro. “Regardless, we will present our case to show what every 17-year-old in the world knows: Instagram competes with TikTok. The FTC spent tens of millions of taxpayer dollars bringing a weak case with a market definition that ignores reality.” A judgment on partial findings asks a judge to consider a case’s merits before it has been fully argued in court, attempting to speed its resolution. The trial is still currently scheduled to proceed, with Meta launching into its defense against the FTC’s allegations, but the filing offers a preview of its case. As Meta’s lawyers have done in cross-examination, it takes aim at the agency’s description of Meta monopolizing a “personal social networking services” market that people use to share information with family and friends. It argues that the FTC has failed to demonstrate Meta reduced the quality of its servicesor that it bought Instagram to neutralize a potential rival. The FTC has made its case with testimony from several high-profile players in Meta’s businesses, including Instagram’s co-founder Kevin Systrom — who aired complaints about Meta’s handling of his company — and its current head, Adam Mosseri, who offered a more optimistic take. Meta has countered by emphasizing the company’s persistent struggles against social networks that the FTC doesn’t consider full competitors, particularly TikTok, which, in the war for those aforementioned 17-year-olds’ attention, Meta portrays as a constant scourge. #meta #asks #judge #throw #out

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Meta asks judge to throw out antitrust case mid-trial
Meta has filed a motion for judgment on the antitrust case it’s currently fighting in court. The motion argues that the Federal Trade Commission (FTC) has failed to produce any evidence that Meta unlawfully monopolized part of the social networking market, something the government argues it did through its acquisitions of Instagram and WhatsApp. The filing was submitted this evening, shortly after the FTC rested its case in a protracted trial before DC District Court Judge James Boasberg. “After five weeks of trial, it is clear that the FTC has failed to meet the legal standard required under antitrust law,” said Meta spokesperson Christopher Sgro. “Regardless, we will present our case to show what every 17-year-old in the world knows: Instagram competes with TikTok (and YouTube and X and many other apps). The FTC spent tens of millions of taxpayer dollars bringing a weak case with a market definition that ignores reality.” A judgment on partial findings asks a judge to consider a case’s merits before it has been fully argued in court, attempting to speed its resolution. The trial is still currently scheduled to proceed, with Meta launching into its defense against the FTC’s allegations, but the filing offers a preview of its case. As Meta’s lawyers have done in cross-examination, it takes aim at the agency’s description of Meta monopolizing a “personal social networking services” market that people use to share information with family and friends. It argues that the FTC has failed to demonstrate Meta reduced the quality of its services (a key sign that a company lacks competition) or that it bought Instagram to neutralize a potential rival. The FTC has made its case with testimony from several high-profile players in Meta’s businesses, including Instagram’s co-founder Kevin Systrom — who aired complaints about Meta’s handling of his company — and its current head, Adam Mosseri, who offered a more optimistic take. Meta has countered by emphasizing the company’s persistent struggles against social networks that the FTC doesn’t consider full competitors, particularly TikTok, which, in the war for those aforementioned 17-year-olds’ attention, Meta portrays as a constant scourge.

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2025-05-13 13:47:29 - Translate -

#333;">Why one obscure app could help crumble Meta’s empire
If the question, “Who is Meta’s biggest rival?” were on a Family Feud survey, TikTok would likely be the winning answer.
In the Federal Trade Commission’s antitrust case against the Facebook and Instagram owner, the government’s response probably wouldn’t even make the top 10: a small blockchain-based platform called MeWe.
MeWe looks a fair amount like Facebook at first glance, except that you make an account using the Frequency blockchain — which the company explains is a decentralized protocol that lets you move your social connections to other (mostly hypothetical at this point) apps that support Frequency.
The company says 20 million users have joined, but when I make a MeWe account and log in, I scroll through my autopopulated feed and think, “Who are these people?” I search for a few of my Verge colleagues, figuring if anyone has tried this obscure app, it might be one of them, but I come up short.
I try some public figures: Tim Cook? Jeff Bezos? Mark Zuckerberg? There are some accounts with these names, but it seems unlikely they’re the ones I have in mind.The claim that MeWe is a closer competitor to Facebook and Instagram than TikTok might be baffling if you’re not steeped in antitrust law or the specifics of the FTC’s complaint.
Meta CEO Zuckerberg testified he hadn’t even heard of the app before this case was filed.
But the FTC has spent the past three weeks laying out its logic.
Using Meta’s own internal discussions about how it views itself and its competition, it says that Meta has historically, and to this day, competed in a market for connecting with friends and family online — and when it saw its dominance in that space threatened by the rise of Instagram and WhatsApp, it bought them to squash the competition.Whether Judge James Boasberg buys this could determine who wins the case — if the FTC can also show that Meta acted illegally through its acquisitions of Instagram and WhatsApp to solidify its alleged monopoly power.Antitrust law is supposed to ensure fair competition, which usually means that people have options for a useful class of goods and services — what’s known as a relevant market.
The FTC says that here, that market is “personal social networking services,” or PSNs: spaces where a core purpose is helping people connect with friends and family.
While there are many online platforms that overlap with Meta’s services, the FTC argues that virtually none of them serve that market.
If internet users want to find and hang out with people they know — as opposed to, say, watching influencers or making work connections — then it’s Mark Zuckerberg’s way or… in the government’s telling, Snapchat, BeReal, and MeWe.
Beyond that core definition, PSNs have some other unique features and norms: The apps feature a social graph of users’ friends and family connections, as opposed to mapping users primarily based on their interests.
Users can look up and find people they know in real life.
And they come to the app to share personal updates with those people.Facebook and Instagram increasingly display videos and photos from influencers and celebrities, but the FTC argues personal social networking remains a core service.
It used Instagram chief Adam Mosseri’s testimony to most clearly make this point.
In that testimony as well as posts to his own Instagram account, Mosseri said that it’s still important for the app to connect users with their friends.
The FTC argues that even if that use case is a smaller portion of what Meta’s apps do these days, it’s still a significant need users have that can virtually only be fulfilled by Facebook and Instagram.
While someone might connect with people they know in real life on LinkedIn, they likely won’t primarily share personal updates there.
And while they also could follow and interact with people they know on TikTok or YouTube, they’re more likely to passively watch videos from people they don’t.Meta says this is an entirely wrong way to think about it.
Social media platforms compete for users’ time and attention, so whether a particular app is squarely aimed at so-called friends and family sharing is beside the point.
Facebook and Instagram have evolved to show more content from people like influencers, shifting further from the use case the FTC says Meta has illegally dominated.
The company has already landed some important points that could help its case, and it will get more time to push back on the agency’s framing when it calls its own witnesses in the coming weeks.But as the FTC’s case-in-chief continues into its fifth week, its argument for Meta’s dominance is becoming a lot clearer.Why do people use Facebook?When defining a market, each side is trying to answer a key question: why are people choosing one particular company’s product? A lot of goods and services compete with each other in some sense, but this doesn’t mean they serve the same niche.
In the case of sodas, for example, “you could buy lemon-lime, but many people would never see that as a close substitute for buying Coke or Pepsi,” says George Washington Law professor and former FTC Chair Bill Kovacic.
In the tech world, Netflix has claimed its biggest competitors are Fortnite and sleep — but those comparisons probably wouldn’t stand up in court.The FTC says that outside of Facebook and Instagram, only apps like Snapchat and MeWe can fulfill a users’ desire to broadcast personal updates with friends and family online.
To make its case, it brought in a string of executives from other social media companies to explain why their apps can’t quite scratch the same itch for users.
Strava’s former VP of connected partnerships Mateo Ortega testified that sure, users of the fitness-tracking social media app could share baby photos on the platform, but they probably wouldn’t unless it was in a running stroller.
“It’s all about fitness, and while you can post other stuff, it just doesn’t seem as relevant,” he said.
“You could buy lemon-lime, but many people would never see that as a close substitute for buying Coke or Pepsi”Pinterest’s former head of user growth Julia Roberts testified that users who come to Pinterest “expecting it to be like other social media apps … tend to be confused about how to use the product.” That’s because the app is so much not about connecting with other people that it works much differently from other social media platforms.
Pinterest is more about finding things users are interested in, she said, so “following is not a big part of the Pinterest experience.”TikTok has a tab where users can watch videos from their friends — identified as people who mutually follow each other.
But head of operations Adam Presser testified only about 1 percent of videos watched on the platform are there.
The company doesn’t think of itself as competing with Meta’s apps for personal social networking, he testified.
And even though side-by-side screenshots of TikTok, Instagram Reels, and YouTube Shorts look identical, Presser said, “when you click out of this view for these other platforms, you would get to essentially what I think of as their core business,” which for Instagram, includes a feed and stories that often contain at least some content from family and friends.At times, Meta’s cross-examination of rival company executives showed the limits of apps’ similarities.
When questioning Apple director of product marketing Ronak Shah, Meta sought to show that group chats in Apple’s messaging feature could serve as a social media feed for friends and family sharing.
But Shah testified that feed would be limited to 32 people at most, and users can’t just look up each others’ profiles like they would on social platforms.
Still, Meta pointed out, Apple’s messages app is listed under social media on its own app store.However, Meta also made important arguments about why the judge should question the FTC’s framing.
It pointed out that some documents from TikTok and YouTube owner Google claiming their products are very different from Meta’s were submitted to foreign officials to try to avoid getting drafted into potentially frustrating regulations.
It also pointed out when TikTok briefly went dark in the US ahead of a (now-aborted) ban, users flocked to Meta apps, showing consumers see it as a substitute on at least some level.
That’s because, Meta argued, competition for users is really about winning their time and attention.Companies can “sometimes make mistakes.
They misjudge who their users are”But X VP of product Keith Coleman testified it’s not that useful to think about competition this way.
Instead, “it’s much more helpful to understand what people are trying to accomplish in their lives and to try to help them accomplish that.” Under former CEO Jack Dorsey, then-Twitter leaned into focusing on news and users’ interests, Coleman testified, because that’s why people were coming to the platform.
Coleman was later surprised at how his own website characterized the product in its help center as a “service for friends, family, and coworkers to communicate and stay connected through the exchange of quick, frequent messages.” “I can’t believe that’s on the website,” he said.
“That’s pretty wacky.”This point was “a caution that not everything a company writes down or says is necessarily decisive in establishing what the boundary of a market is,” Kovacic said.
Companies can “sometimes make mistakes.
They misjudge who their users are.”There are real ramifications for internet users here.
Going back to Netflix’s comparisons, if the streaming video service went down, some people would probably be happy to play a video game or get a few hours of shut-eye instead.
But others would be frustrated that they couldn’t watch a movie, which is why it’s good that Hulu, HBO, and Amazon Prime Video also exist.
The FTC’s argument isn’t that Meta owns the only social apps on the internet, it’s that the company faces little competition for a service many people specifically want — so the fact that you probably don’t know anyone using MeWe is sort of the point.How will the judge decide?Ultimately, Boasberg’s market definition — whether it’s Meta’s, the FTC’s, or his own — will come down to a few things: how Meta views itself, how competitors see it, and his own intuition, says Kovacic.
”Notice how much the FTC has been questioning Meta witnesses on the basis of its own internal documents,” he says.
“Does the story in the courtroom match the story of your own internal documents?” So far, the documents have shown that Meta has clocked that at least some portion of users come to its products to connect with family and friends, but also that the rise of TikTok has had it looking over its shoulder.
In September 2020, Meta told its board that Instagram revenue would be “meaningfully lower” than planned in the second half of the fiscal year because TikTok was drawing users’ attention.
But other internal documents have shown Meta’s well aware that at different points in time, users have come to its apps to connect with family and friends, and worriedly took note of other apps entering that space.
In a 2018 presentation, Meta found that the highest percentage of surveyed users said they come to Facebook, Instagram, and Snap to “see daily casual moments” and “see special moments.” By contrast, users came to Twitter’s feed for news and YouTube’s for entertainment.
And even as Instagram expands into entertainment, the FTC notes that it still advertises its sign-up page as a place to “see photos and videos from your friends.”“Instagram will always need to focus on friends”In a 2018 email, Zuckerberg told Mosseri that “Instagram will always need to focus on friends.” And even though a lot has changed in the social media landscape since then, Mosseri testified that to this day on the app, “friends are an important part of the experience.” Even though users may share fewer of their own updates on Facebook and Instagram, Mosseri admitted that two friends talking in the comments of a public figure’s post counts as an interaction between friends — and one that Instagram actively tries to facilitate.Meta has argued that this special focus on friends and family sharing makes up a shrinking portion of its offerings as it works to compete with fierce rivals like TikTok.
But the FTC says it’s still significant enough to monopolize.
It’s a scenario that came up in another major tech monopolization case, Kovacic says: the late-1990s lawsuit US v.
Microsoft.
In that case, Microsoft argued the Justice Department was ignoring how computing would soon move beyond the personal computer to the Internet of Things, meaning it couldn’t truly lock up the computing ecosystem as much as the government alleged.“Judge Jackson in the Microsoft case said, yeah, those things are happening, but not happening fast enough to deny you real market power in this PC and laptop-based market that the Justice Department is emphasizing,” Kovacic says.Still, he adds, a market niche can at some point become so small that it’s no longer significant in the eyes of antitrust law.
“You can have a process of change that ultimately renders the market segment unimportant,” he says.
“And the hard task of analysis for the judge is to say, has it already happened?”See More:
#666;">المصدر: https://www.theverge.com/antitrust/665308/meta-ftc-antitrust-trial-market-definition-tiktok-mewe-snap" style="color: #0066cc; text-decoration: none;">www.theverge.com
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Why one obscure app could help crumble Meta’s empire
If the question, “Who is Meta’s biggest rival?” were on a Family Feud survey, TikTok would likely be the winning answer. In the Federal Trade Commission’s antitrust case against the Facebook and Instagram owner, the government’s response probably wouldn’t even make the top 10: a small blockchain-based platform called MeWe. MeWe looks a fair amount like Facebook at first glance, except that you make an account using the Frequency blockchain — which the company explains is a decentralized protocol that lets you move your social connections to other (mostly hypothetical at this point) apps that support Frequency. The company says 20 million users have joined, but when I make a MeWe account and log in, I scroll through my autopopulated feed and think, “Who are these people?” I search for a few of my Verge colleagues, figuring if anyone has tried this obscure app, it might be one of them, but I come up short. I try some public figures: Tim Cook? Jeff Bezos? Mark Zuckerberg? There are some accounts with these names, but it seems unlikely they’re the ones I have in mind.The claim that MeWe is a closer competitor to Facebook and Instagram than TikTok might be baffling if you’re not steeped in antitrust law or the specifics of the FTC’s complaint. Meta CEO Zuckerberg testified he hadn’t even heard of the app before this case was filed. But the FTC has spent the past three weeks laying out its logic. Using Meta’s own internal discussions about how it views itself and its competition, it says that Meta has historically, and to this day, competed in a market for connecting with friends and family online — and when it saw its dominance in that space threatened by the rise of Instagram and WhatsApp, it bought them to squash the competition.Whether Judge James Boasberg buys this could determine who wins the case — if the FTC can also show that Meta acted illegally through its acquisitions of Instagram and WhatsApp to solidify its alleged monopoly power.Antitrust law is supposed to ensure fair competition, which usually means that people have options for a useful class of goods and services — what’s known as a relevant market. The FTC says that here, that market is “personal social networking services,” or PSNs: spaces where a core purpose is helping people connect with friends and family. While there are many online platforms that overlap with Meta’s services, the FTC argues that virtually none of them serve that market. If internet users want to find and hang out with people they know — as opposed to, say, watching influencers or making work connections — then it’s Mark Zuckerberg’s way or… in the government’s telling, Snapchat, BeReal, and MeWe. Beyond that core definition, PSNs have some other unique features and norms: The apps feature a social graph of users’ friends and family connections, as opposed to mapping users primarily based on their interests. Users can look up and find people they know in real life. And they come to the app to share personal updates with those people.Facebook and Instagram increasingly display videos and photos from influencers and celebrities, but the FTC argues personal social networking remains a core service. It used Instagram chief Adam Mosseri’s testimony to most clearly make this point. In that testimony as well as posts to his own Instagram account, Mosseri said that it’s still important for the app to connect users with their friends. The FTC argues that even if that use case is a smaller portion of what Meta’s apps do these days, it’s still a significant need users have that can virtually only be fulfilled by Facebook and Instagram. While someone might connect with people they know in real life on LinkedIn, they likely won’t primarily share personal updates there. And while they also could follow and interact with people they know on TikTok or YouTube, they’re more likely to passively watch videos from people they don’t.Meta says this is an entirely wrong way to think about it. Social media platforms compete for users’ time and attention, so whether a particular app is squarely aimed at so-called friends and family sharing is beside the point. Facebook and Instagram have evolved to show more content from people like influencers, shifting further from the use case the FTC says Meta has illegally dominated. The company has already landed some important points that could help its case, and it will get more time to push back on the agency’s framing when it calls its own witnesses in the coming weeks.But as the FTC’s case-in-chief continues into its fifth week, its argument for Meta’s dominance is becoming a lot clearer.Why do people use Facebook?When defining a market, each side is trying to answer a key question: why are people choosing one particular company’s product? A lot of goods and services compete with each other in some sense, but this doesn’t mean they serve the same niche. In the case of sodas, for example, “you could buy lemon-lime, but many people would never see that as a close substitute for buying Coke or Pepsi,” says George Washington Law professor and former FTC Chair Bill Kovacic. In the tech world, Netflix has claimed its biggest competitors are Fortnite and sleep — but those comparisons probably wouldn’t stand up in court.The FTC says that outside of Facebook and Instagram, only apps like Snapchat and MeWe can fulfill a users’ desire to broadcast personal updates with friends and family online. To make its case, it brought in a string of executives from other social media companies to explain why their apps can’t quite scratch the same itch for users. Strava’s former VP of connected partnerships Mateo Ortega testified that sure, users of the fitness-tracking social media app could share baby photos on the platform, but they probably wouldn’t unless it was in a running stroller. “It’s all about fitness, and while you can post other stuff, it just doesn’t seem as relevant,” he said. “You could buy lemon-lime, but many people would never see that as a close substitute for buying Coke or Pepsi”Pinterest’s former head of user growth Julia Roberts testified that users who come to Pinterest “expecting it to be like other social media apps … tend to be confused about how to use the product.” That’s because the app is so much not about connecting with other people that it works much differently from other social media platforms. Pinterest is more about finding things users are interested in, she said, so “following is not a big part of the Pinterest experience.”TikTok has a tab where users can watch videos from their friends — identified as people who mutually follow each other. But head of operations Adam Presser testified only about 1 percent of videos watched on the platform are there. The company doesn’t think of itself as competing with Meta’s apps for personal social networking, he testified. And even though side-by-side screenshots of TikTok, Instagram Reels, and YouTube Shorts look identical, Presser said, “when you click out of this view for these other platforms, you would get to essentially what I think of as their core business,” which for Instagram, includes a feed and stories that often contain at least some content from family and friends.At times, Meta’s cross-examination of rival company executives showed the limits of apps’ similarities. When questioning Apple director of product marketing Ronak Shah, Meta sought to show that group chats in Apple’s messaging feature could serve as a social media feed for friends and family sharing. But Shah testified that feed would be limited to 32 people at most, and users can’t just look up each others’ profiles like they would on social platforms. Still, Meta pointed out, Apple’s messages app is listed under social media on its own app store.However, Meta also made important arguments about why the judge should question the FTC’s framing. It pointed out that some documents from TikTok and YouTube owner Google claiming their products are very different from Meta’s were submitted to foreign officials to try to avoid getting drafted into potentially frustrating regulations. It also pointed out when TikTok briefly went dark in the US ahead of a (now-aborted) ban, users flocked to Meta apps, showing consumers see it as a substitute on at least some level. That’s because, Meta argued, competition for users is really about winning their time and attention.Companies can “sometimes make mistakes. They misjudge who their users are”But X VP of product Keith Coleman testified it’s not that useful to think about competition this way. Instead, “it’s much more helpful to understand what people are trying to accomplish in their lives and to try to help them accomplish that.” Under former CEO Jack Dorsey, then-Twitter leaned into focusing on news and users’ interests, Coleman testified, because that’s why people were coming to the platform. Coleman was later surprised at how his own website characterized the product in its help center as a “service for friends, family, and coworkers to communicate and stay connected through the exchange of quick, frequent messages.” “I can’t believe that’s on the website,” he said. “That’s pretty wacky.”This point was “a caution that not everything a company writes down or says is necessarily decisive in establishing what the boundary of a market is,” Kovacic said. Companies can “sometimes make mistakes. They misjudge who their users are.”There are real ramifications for internet users here. Going back to Netflix’s comparisons, if the streaming video service went down, some people would probably be happy to play a video game or get a few hours of shut-eye instead. But others would be frustrated that they couldn’t watch a movie, which is why it’s good that Hulu, HBO, and Amazon Prime Video also exist. The FTC’s argument isn’t that Meta owns the only social apps on the internet, it’s that the company faces little competition for a service many people specifically want — so the fact that you probably don’t know anyone using MeWe is sort of the point.How will the judge decide?Ultimately, Boasberg’s market definition — whether it’s Meta’s, the FTC’s, or his own — will come down to a few things: how Meta views itself, how competitors see it, and his own intuition, says Kovacic. ”Notice how much the FTC has been questioning Meta witnesses on the basis of its own internal documents,” he says. “Does the story in the courtroom match the story of your own internal documents?” So far, the documents have shown that Meta has clocked that at least some portion of users come to its products to connect with family and friends, but also that the rise of TikTok has had it looking over its shoulder. In September 2020, Meta told its board that Instagram revenue would be “meaningfully lower” than planned in the second half of the fiscal year because TikTok was drawing users’ attention. But other internal documents have shown Meta’s well aware that at different points in time, users have come to its apps to connect with family and friends, and worriedly took note of other apps entering that space. In a 2018 presentation, Meta found that the highest percentage of surveyed users said they come to Facebook, Instagram, and Snap to “see daily casual moments” and “see special moments.” By contrast, users came to Twitter’s feed for news and YouTube’s for entertainment. And even as Instagram expands into entertainment, the FTC notes that it still advertises its sign-up page as a place to “see photos and videos from your friends.”“Instagram will always need to focus on friends”In a 2018 email, Zuckerberg told Mosseri that “Instagram will always need to focus on friends.” And even though a lot has changed in the social media landscape since then, Mosseri testified that to this day on the app, “friends are an important part of the experience.” Even though users may share fewer of their own updates on Facebook and Instagram, Mosseri admitted that two friends talking in the comments of a public figure’s post counts as an interaction between friends — and one that Instagram actively tries to facilitate.Meta has argued that this special focus on friends and family sharing makes up a shrinking portion of its offerings as it works to compete with fierce rivals like TikTok. But the FTC says it’s still significant enough to monopolize. It’s a scenario that came up in another major tech monopolization case, Kovacic says: the late-1990s lawsuit US v. Microsoft. In that case, Microsoft argued the Justice Department was ignoring how computing would soon move beyond the personal computer to the Internet of Things, meaning it couldn’t truly lock up the computing ecosystem as much as the government alleged.“Judge Jackson in the Microsoft case said, yeah, those things are happening, but not happening fast enough to deny you real market power in this PC and laptop-based market that the Justice Department is emphasizing,” Kovacic says.Still, he adds, a market niche can at some point become so small that it’s no longer significant in the eyes of antitrust law. “You can have a process of change that ultimately renders the market segment unimportant,” he says. “And the hard task of analysis for the judge is to say, has it already happened?”See More:
المصدر: www.theverge.com
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Why one obscure app could help crumble Meta’s empire
If the question, “Who is Meta’s biggest rival?” were on a Family Feud survey, TikTok would likely be the winning answer. In the Federal Trade Commission’s antitrust case against the Facebook and Instagram owner, the government’s response probably wouldn’t even make the top 10: a small blockchain-based platform called MeWe. MeWe looks a fair amount like Facebook at first glance, except that you make an account using the Frequency blockchain — which the company explains is a decentralized protocol that lets you move your social connections to other (mostly hypothetical at this point) apps that support Frequency. The company says 20 million users have joined, but when I make a MeWe account and log in, I scroll through my autopopulated feed and think, “Who are these people?” I search for a few of my Verge colleagues, figuring if anyone has tried this obscure app, it might be one of them, but I come up short. I try some public figures: Tim Cook? Jeff Bezos? Mark Zuckerberg? There are some accounts with these names, but it seems unlikely they’re the ones I have in mind.The claim that MeWe is a closer competitor to Facebook and Instagram than TikTok might be baffling if you’re not steeped in antitrust law or the specifics of the FTC’s complaint. Meta CEO Zuckerberg testified he hadn’t even heard of the app before this case was filed. But the FTC has spent the past three weeks laying out its logic. Using Meta’s own internal discussions about how it views itself and its competition, it says that Meta has historically, and to this day, competed in a market for connecting with friends and family online — and when it saw its dominance in that space threatened by the rise of Instagram and WhatsApp, it bought them to squash the competition.Whether Judge James Boasberg buys this could determine who wins the case — if the FTC can also show that Meta acted illegally through its acquisitions of Instagram and WhatsApp to solidify its alleged monopoly power.Antitrust law is supposed to ensure fair competition, which usually means that people have options for a useful class of goods and services — what’s known as a relevant market. The FTC says that here, that market is “personal social networking services,” or PSNs: spaces where a core purpose is helping people connect with friends and family. While there are many online platforms that overlap with Meta’s services, the FTC argues that virtually none of them serve that market. If internet users want to find and hang out with people they know — as opposed to, say, watching influencers or making work connections — then it’s Mark Zuckerberg’s way or… in the government’s telling, Snapchat, BeReal, and MeWe. Beyond that core definition, PSNs have some other unique features and norms: The apps feature a social graph of users’ friends and family connections, as opposed to mapping users primarily based on their interests. Users can look up and find people they know in real life. And they come to the app to share personal updates with those people.Facebook and Instagram increasingly display videos and photos from influencers and celebrities, but the FTC argues personal social networking remains a core service. It used Instagram chief Adam Mosseri’s testimony to most clearly make this point. In that testimony as well as posts to his own Instagram account, Mosseri said that it’s still important for the app to connect users with their friends. The FTC argues that even if that use case is a smaller portion of what Meta’s apps do these days, it’s still a significant need users have that can virtually only be fulfilled by Facebook and Instagram. While someone might connect with people they know in real life on LinkedIn, they likely won’t primarily share personal updates there. And while they also could follow and interact with people they know on TikTok or YouTube, they’re more likely to passively watch videos from people they don’t.Meta says this is an entirely wrong way to think about it. Social media platforms compete for users’ time and attention, so whether a particular app is squarely aimed at so-called friends and family sharing is beside the point. Facebook and Instagram have evolved to show more content from people like influencers, shifting further from the use case the FTC says Meta has illegally dominated. The company has already landed some important points that could help its case, and it will get more time to push back on the agency’s framing when it calls its own witnesses in the coming weeks.But as the FTC’s case-in-chief continues into its fifth week, its argument for Meta’s dominance is becoming a lot clearer.Why do people use Facebook?When defining a market, each side is trying to answer a key question: why are people choosing one particular company’s product? A lot of goods and services compete with each other in some sense, but this doesn’t mean they serve the same niche. In the case of sodas, for example, “you could buy lemon-lime, but many people would never see that as a close substitute for buying Coke or Pepsi,” says George Washington Law professor and former FTC Chair Bill Kovacic. In the tech world, Netflix has claimed its biggest competitors are Fortnite and sleep — but those comparisons probably wouldn’t stand up in court.The FTC says that outside of Facebook and Instagram, only apps like Snapchat and MeWe can fulfill a users’ desire to broadcast personal updates with friends and family online. To make its case, it brought in a string of executives from other social media companies to explain why their apps can’t quite scratch the same itch for users. Strava’s former VP of connected partnerships Mateo Ortega testified that sure, users of the fitness-tracking social media app could share baby photos on the platform, but they probably wouldn’t unless it was in a running stroller. “It’s all about fitness, and while you can post other stuff, it just doesn’t seem as relevant,” he said. “You could buy lemon-lime, but many people would never see that as a close substitute for buying Coke or Pepsi”Pinterest’s former head of user growth Julia Roberts testified that users who come to Pinterest “expecting it to be like other social media apps … tend to be confused about how to use the product.” That’s because the app is so much not about connecting with other people that it works much differently from other social media platforms. Pinterest is more about finding things users are interested in, she said, so “following is not a big part of the Pinterest experience.”TikTok has a tab where users can watch videos from their friends — identified as people who mutually follow each other. But head of operations Adam Presser testified only about 1 percent of videos watched on the platform are there. The company doesn’t think of itself as competing with Meta’s apps for personal social networking, he testified. And even though side-by-side screenshots of TikTok, Instagram Reels, and YouTube Shorts look identical, Presser said, “when you click out of this view for these other platforms, you would get to essentially what I think of as their core business,” which for Instagram, includes a feed and stories that often contain at least some content from family and friends.At times, Meta’s cross-examination of rival company executives showed the limits of apps’ similarities. When questioning Apple director of product marketing Ronak Shah, Meta sought to show that group chats in Apple’s messaging feature could serve as a social media feed for friends and family sharing. But Shah testified that feed would be limited to 32 people at most, and users can’t just look up each others’ profiles like they would on social platforms. Still, Meta pointed out, Apple’s messages app is listed under social media on its own app store.However, Meta also made important arguments about why the judge should question the FTC’s framing. It pointed out that some documents from TikTok and YouTube owner Google claiming their products are very different from Meta’s were submitted to foreign officials to try to avoid getting drafted into potentially frustrating regulations. It also pointed out when TikTok briefly went dark in the US ahead of a (now-aborted) ban, users flocked to Meta apps, showing consumers see it as a substitute on at least some level. That’s because, Meta argued, competition for users is really about winning their time and attention.Companies can “sometimes make mistakes. They misjudge who their users are”But X VP of product Keith Coleman testified it’s not that useful to think about competition this way. Instead, “it’s much more helpful to understand what people are trying to accomplish in their lives and to try to help them accomplish that.” Under former CEO Jack Dorsey, then-Twitter leaned into focusing on news and users’ interests, Coleman testified, because that’s why people were coming to the platform. Coleman was later surprised at how his own website characterized the product in its help center as a “service for friends, family, and coworkers to communicate and stay connected through the exchange of quick, frequent messages.” “I can’t believe that’s on the website,” he said. “That’s pretty wacky.”This point was “a caution that not everything a company writes down or says is necessarily decisive in establishing what the boundary of a market is,” Kovacic said. Companies can “sometimes make mistakes. They misjudge who their users are.”There are real ramifications for internet users here. Going back to Netflix’s comparisons, if the streaming video service went down, some people would probably be happy to play a video game or get a few hours of shut-eye instead. But others would be frustrated that they couldn’t watch a movie, which is why it’s good that Hulu, HBO, and Amazon Prime Video also exist. The FTC’s argument isn’t that Meta owns the only social apps on the internet, it’s that the company faces little competition for a service many people specifically want — so the fact that you probably don’t know anyone using MeWe is sort of the point.How will the judge decide?Ultimately, Boasberg’s market definition — whether it’s Meta’s, the FTC’s, or his own — will come down to a few things: how Meta views itself, how competitors see it, and his own intuition, says Kovacic. ”Notice how much the FTC has been questioning Meta witnesses on the basis of its own internal documents,” he says. “Does the story in the courtroom match the story of your own internal documents?” So far, the documents have shown that Meta has clocked that at least some portion of users come to its products to connect with family and friends, but also that the rise of TikTok has had it looking over its shoulder. In September 2020, Meta told its board that Instagram revenue would be “meaningfully lower” than planned in the second half of the fiscal year because TikTok was drawing users’ attention. But other internal documents have shown Meta’s well aware that at different points in time, users have come to its apps to connect with family and friends, and worriedly took note of other apps entering that space. In a 2018 presentation, Meta found that the highest percentage of surveyed users said they come to Facebook, Instagram, and Snap to “see daily casual moments” and “see special moments.” By contrast, users came to Twitter’s feed for news and YouTube’s for entertainment. And even as Instagram expands into entertainment, the FTC notes that it still advertises its sign-up page as a place to “see photos and videos from your friends.”“Instagram will always need to focus on friends”In a 2018 email, Zuckerberg told Mosseri that “Instagram will always need to focus on friends.” And even though a lot has changed in the social media landscape since then, Mosseri testified that to this day on the app, “friends are an important part of the experience.” Even though users may share fewer of their own updates on Facebook and Instagram, Mosseri admitted that two friends talking in the comments of a public figure’s post counts as an interaction between friends — and one that Instagram actively tries to facilitate.Meta has argued that this special focus on friends and family sharing makes up a shrinking portion of its offerings as it works to compete with fierce rivals like TikTok. But the FTC says it’s still significant enough to monopolize. It’s a scenario that came up in another major tech monopolization case, Kovacic says: the late-1990s lawsuit US v. Microsoft. In that case, Microsoft argued the Justice Department was ignoring how computing would soon move beyond the personal computer to the Internet of Things, meaning it couldn’t truly lock up the computing ecosystem as much as the government alleged.“Judge Jackson in the Microsoft case said, yeah, those things are happening, but not happening fast enough to deny you real market power in this PC and laptop-based market that the Justice Department is emphasizing,” Kovacic says.Still, he adds, a market niche can at some point become so small that it’s no longer significant in the eyes of antitrust law. “You can have a process of change that ultimately renders the market segment unimportant,” he says. “And the hard task of analysis for the judge is to say, has it already happened?”See More:

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