For Meta Platforms, (META) the outlook for the near future is looking increasingly complicated as negative headlines pile up.
The social media giant isn’t off to a good start for the year, despite CEO Mark Zuckerberg’s attempts to stay on President Donald Trump’s good side. Following Trump’s election, experts speculated that tech companies would benefit from his policies but so far, his recent tariffs are pushing down most sectors.
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Despite some momentum during the first month of 2025, META stock has been trending downward since mid-February and is down 16% year-to-date. But things may be about to get even worse for both Meta and Zuckerberg.
The company is getting ready to face off against a government agency in federal court in what promises to be a historic legal battle. If the verdict doesn’t go Meta’s way, the consequences could be significant.
Image source: Getty Images
April 14 marks a pivotal day in Meta’s history
Meta is no stranger to legal battles, nor is Zuckerberg. Facebook, the social media platform around which the company is built, began with a well-publicized lawsuit brought against the young CEO by Cameron and Tyler Winklevloss who accused him of stealing their idea.
In the years since, Meta has been accused of quite a bit of illicit activity, often involving data privacy and users’ safety. The company has managed to avoid any real consequences, apart from fines and loss of users, but in the coming weeks, a court case is scheduled to begin, and everything is on the line for the social media leader.
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On April 14, Meta will head to federal court to settle a lawsuit brought against it by the U.S. Federal Trade Commission (FTC). The independent government agency is tasked with enforcing antitrust laws and promoting consumer protection policies, two areas that Meta has been accused of violating.
In this case, the FTC has accused Meta of committing antitrust violations by unfairly stifling competition in its industry. More specifically, the agency alleges that Zuckerberg’s company acquired startups Instagram and WhatsApp before they could become fully developed businesses in the name of eliminating competition in its market.
According to the New York Times, the case could be resolved with a settlement on Meta’s part. But Meta seems intent on maintaining the upper hand, as indicated by Zuckerberg lobbying President Trump to settle the matter, an effort that he has reportedly increased recently.
Described as “the most serious antitrust challenge in Meta’s history,” this case threatens to spell the end of Meta’s status as an industry leader. It could end in the company being forced to unwind its acquisitions of both Instagram and WhatsApp, effectively breaking up the empire that has shaped the modern social media landscape.
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If the trial does proceed and ends with Meta being found guilty, no potential remedies would be determined until its next phase. But while Zuckerberg and Meta’s leadership team will likely work hard to ensure the case doesn’t get that far, pressing questions remain as to how it will be handled.
The new FTC chair may have some difficult decisions to make
The implications of this historic court case go beyond simply determining if Meta will be broken up. They will offer the U.S. a look at how Andrew Ferguson, the new chair of the FTC, will handle antitrust cases at a time when many leading tech companies are facing similar accusations.
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A former solicitor general, Ferguson is well known for his criticism of social media platforms, who he has accused of censoring users. Now the industry is wondering if he will continue this legal action against one of the industry’s most prominent companies, especially as Zuckerberg is now seen as a Trump ally.
“While Silicon Valley had hoped that Trump’s return to the White House would unlock dealmaking, Meta’s case could be a powerful tool to discourage anti-competitive acquisitions,” reports the Financial Times, highlighting the high stakes not just for Meta but all its big tech peers.
The outlet also notes that Ferguson has implied he will continue the legacy of Lina Khan, the former FTC chair who prioritized scrutiny of big tech. How he handles the current case as Meta fights to have it dismissed will offer an important preview of what tech regulation will look like in the coming years.
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