Meta Platforms, the tech titan behind Facebook, Instagram, and WhatsApp, is simultaneously fighting a historic antitrust case and racing to reshape digital advertising through artificial intelligence. As regulators aim to break up its social media empire, Meta is forging ahead with AI innovations that could redefine how businesses market their products—potentially cementing its dominance in an entirely new domain.
The Deals That Built Meta—and Sparked a Legal Firestorm
In 2012, Facebook acquired Instagram for $1 billion, a move once dubbed “the bargain of the century.” Just two years later, it spent $19 billion to buy WhatsApp. At the time, Facebook was still transitioning from desktop to mobile and facing growing competition. These deals transformed Facebook from a single-platform service into the global digital powerhouse now known as Meta.
But what once seemed like smart strategy is now under legal scrutiny. In April 2025, Meta CEO Mark Zuckerberg appeared in a Washington, D.C. courtroom to defend these acquisitions against claims from the U.S. Federal Trade Commission (FTC) that they were illegal moves to stifle competition and create a social media monopoly.
The FTC’s goal? Force Meta to spin off Instagram and WhatsApp into independent companies—undoing a decade of expansion.
Inside the Antitrust Showdown
The FTC’s case, first filed in 2020, argues that Meta violated antitrust laws by monopolizing the market for “personal social networking services.” Presiding over the case is Chief Judge James Boasberg, who initially dismissed the lawsuit but later allowed a revised version to proceed, calling it “far more robust.”
At the heart of the trial is the question: Did Meta kill off competitors by acquiring them?
Kevin Systrom, co-founder of Instagram, testified that his platform was growing at an “unstoppable” rate before the acquisition. After winning Apple’s “App of the Year,” Instagram saw explosive user growth. “We were a threat to their growth,” he said, noting that Meta reduced Instagram’s resources post-acquisition and deprioritized it based on internal politics.
WhatsApp’s story echoed similar concerns. Internal emails revealed that Facebook executives viewed WhatsApp’s rapid global growth as a serious threat—especially if acquired by rivals like Google or Apple. “This shit is getting scary,” read one message from 2012. Even though Facebook had no clear monetization plan for WhatsApp, it pursued the acquisition to maintain market control.
The Key Question: What Market Does Meta Dominate?
The FTC claims Meta holds a monopoly in “personal social networking services”—platforms focused on connecting friends and family. Meta counters that it competes in a broader digital ecosystem, including platforms like TikTok and Reddit.
To support its argument, Meta brought in executives from rival companies. TikTok’s operations head said only 1% of its user time is spent on personal connections, while Pinterest’s former product chief emphasized that their platform isn’t designed for social networking at all.
While Fighting in Court, Meta Reinvents Ads with AI
Amid the courtroom drama, Meta’s business is booming. In Q1 2025, it posted $42.31 billion in revenue—well above expectations—with $6.43 earnings per share.
Fueling this growth is Meta’s aggressive pivot to AI-powered advertising. In a recent interview, Zuckerberg described a future where AI handles everything: ad creation, targeting, delivery, and optimization. “You don’t need creatives, targeting, or even measurement,” he said. “You just connect your bank account and set an objective.”
Meta’s AI can now generate product photos, write ad copy, launch campaigns, and analyze results—automatically. If an ad performs well, the system scales it up without human involvement.
In Q1, more than 30% of advertisers used Meta’s AI tools. A new AI recommendation model for Reels boosted conversion rates by 5%. Zuckerberg also noted that AI-driven improvements have increased time spent on Facebook by 7%, Instagram by 6%, and Threads by a whopping 35%.
To support this, Meta is pouring money into infrastructure, raising its 2025 capital expenditure forecast to $64–$72 billion, with a significant chunk going toward data centers to power AI.
Global Pushback: Regulators Close In
But Meta’s expansion hasn’t gone unnoticed. Around the world, regulators are tightening their grip.
In Europe, the Digital Markets Act (DMA) now classifies Meta as a “gatekeeper,” requiring it to ensure fair competition and user choice. In February 2025, the EU fined Meta €1.2 billion for unlawfully sharing data between Facebook and Instagram. Meta is appealing but must still implement changes to comply.
In India—Meta’s largest user base—the Competition Commission launched an investigation into WhatsApp’s dominance and its integration with other Meta services, probing whether this consolidation unfairly hinders competition.
What’s at Stake?
If the court rules against Meta, it could be forced to sell off Instagram and WhatsApp—an outcome that would radically reshape the tech landscape. Analysts estimate Instagram alone could be worth over $300 billion as a standalone company, with WhatsApp valued between $100–150 billion. Together, they could rival or even exceed Meta’s current market cap.
Meanwhile, the FTC argues that Meta’s acquisitions were less about growth and more about eliminating competition. Systrom’s testimony backed this view, suggesting that Meta throttled Instagram’s potential after buying it.
Regardless of the trial’s outcome, Meta’s vision is clear: dominate the next phase of digital advertising. And ironically, the same data and network power at the heart of the antitrust trial could be the fuel for its next empire.
Conclusion: Monopoly or Masterstroke?
Meta is at a crossroads. On one hand, it faces a potentially devastating legal judgment that could unravel its decade-long strategy. On the other, it’s leading the charge into an AI-driven future that could make it even more powerful.
Whether it ends in a breakup or a business triumph, one thing is certain: Meta is betting that its control over how we connect today will give it control over how we sell, shop, and communicate tomorrow. The challenge for regulators is whether they can keep up.
