Mark Zuckerberg offered $1B to settle FTC antitrust case: Report
What's the story
Meta Platforms CEO Mark Zuckerberg reportedly offered up to $1 billion to settle the ongoing antitrust lawsuit by the US Federal Trade Commission (FTC).
According to the Wall Street Journal, Zuckerberg first offered $450 million in March to settle the case. However, as the trial approached, he upped the offer to $1 billion.
This was much lower than FTC's alleged demand of $30 billion to dismiss the case.
Rejection
FTC chairman rejects Zuckerberg's settlement offer
Reportedly, FTC Chairman Andrew Ferguson dismissed the proposal, refusing to entertain any settlement below $18 billion and a formal consent decree.
The Wall Street Journal reports that Zuckerberg spearheaded an intense lobbying effort to avoid the FTC trial.
Ahead of the trial, he had even sought help from US President Donald Trump, hoping to get his support in blocking the monopoly lawsuit against Meta.
Trial
Zuckerberg's defense in FTC antitrust trial
The FTC accused Meta of suppressing competition by buying Instagram and WhatsApp, two major competitors in the social media space.
The ongoing antitrust trial could see the $1.4 trillion company being broken up.
On the stand, Zuckerberg defended the acquisitions as attempts to promote innovation and improve user experiences, not eliminate competition.
He admitted Facebook has changed over the years but reiterated Meta's core mission is to help people connect with their friends and family.
Evidence
FTC's case relies on Zuckerberg's 2012 email
A key evidence in FTC's case is a 2012 email from Zuckerberg, hinting that buying Instagram could be a way to "neutralize a competitor."
Another email reportedly voiced his concern over Facebook Camera lagging behind Instagram.
While Zuckerberg confirmed the authenticity of both emails, he argued they were part of internal discussions and didn't reflect Meta's long-term strategic vision.
Implications
Potential impact on Meta's business
If the court sides with the FTC, Meta may be forced to divest Instagram and WhatsApp, which would be a major blow to its business.
By 2025, Instagram alone is predicted to contribute more than half of Meta's US ad revenue.
The trial is expected to last up to eight weeks with additional testimonies from several high-profile personalities including former Meta Chief Operating Officer Sheryl Sandberg and Instagram co-founder Kevin Systrom.