'No Expiration Date' On Meta's Antitrust Case, Says Former FTC Chair Ahead Of Trial

Social media giant Meta Platforms META could be forced to spinoff or divest Instagram and WhatsApp as the result of a pending trial with the Federal Trade Commission.What Happened: Lina Khan, who stepped down as FTC Chair in January 2025, is speaking out as Meta's antitrust trial begins Monday. She previously accused the company of using monopoly power to acquire smaller rivals like Instagram and WhatsApp.The FTC accuses Meta of using its considerable power to acquire Instagram in 2012 and WhatsApp in 2014."It saw companies like Instagram and WhatsApp experiencing astronomical growth, and that's the point at which it resorted to this buy-or-bury scheme where, if it couldn't outcompete a rival, it either bought them out or cut them off its network," Khan said on "Squawk Box" Monday.Khan said that Meta, previously known as Facebook, "panicked" when it made the acquisitions and could still be forced to reverse course years later."There's no expiration date when it comes to the illegality of the transaction. I think there is a way in which the entire social networking ecosystem looks different today because Facebook was permitted to go out and make these acquisitions."Khan said the FTC's case, which dates back to 2020, is about "free and fair trade."Facebook paid $1 billion to acquire Instagram in 2012 and $19 billion to acquire WhatsApp in 2014.Read Also: Mark Zuckerberg’s Empire in Jeopardy as Meta Faces Antitrust Battle in CourtWhy It's Important: The initial FTC complaint was dismissed before being accepted in 2024 with an amended complaint. Meta has filed a pretrial brief saying it disagrees with the FTC and that the company is not a monopoly.On Monday, new FTC Chairman Andrew Ferguson said Meta is "certainly" a monopoly during an interview on Fox Business.While the FTC trial could take some time, Meta could be forced to divest Instagram and/or WhatsApp. The FTC trial unfolds as Meta CEO Mark Zuckerberg seeks to dismiss the case while also reportedly strengthening ties with President Donald Trump.Zuckerberg donated $1 million to Trump's inauguration fund and has had several meetings with Trump since his January inauguration. Ferguson was questioned by Congress if he would dismiss the case against Meta if asked to do so by Trump."Until the trial is over and until we actually get a liability verdict and then a remedy, we're all going to have to wait and see," Khan said.There are betting markets on Polymarket for potential moves by Meta due to the FTC trial.The odds on Polymarket for Meta Platforms to be forced to sell either Instagram or WhatsApp are 15% as of Monday. Separate markets for Meta announcing it will sell Instagram or WhatsApp sit at 12% and 10%, respectively.META Price Action: Meta stock is down 1.7% to $534.10 on Monday versus a 52-week trading range of $414.50 to $740.89. Meta stock is down 10.9% year-to-date in 2025.Read Next: Jon Stewart’s ‘Really Lame’ Dig About Facebook Purchase Of Instagram Resurfaces, Yet Meta Has The Last LaughPhoto: Shutterstock