Zuckerberg testifies four hours at FTC antitrust trial as $450M settlement offer is called 'delusional'
Apr 16, 2025
Key Points
- Meta offered $450 million to settle its FTC antitrust case over Instagram and WhatsApp acquisitions, a figure former FTC chair Lena Khan called delusional against the agency's $30 billion demand.
- Mark Zuckerberg testified for four hours as the trial opened, with the FTC arguing Meta used acquisitions as a kill-switch against emerging social competitors rather than competing on product.
- The case will determine whether large tech companies can use M&A defensively or face structural remedies, with a decisive Meta loss resetting regulator expectations across future tech acquisitions.
Summary
Meta offered $450 million to settle its FTC antitrust case over the Instagram and WhatsApp acquisitions. The FTC had demanded $30 billion plus a consent decree restricting future M&A. Former FTC chair Lena Khan called the offer delusional.
Mark Zuckerberg testified for four hours as the trial began. The FTC's core claim is that Meta used acquisitions as a kill-switch against emerging social competitors rather than building competitive products organically.
The $450 million offer and the $30 billion demand reveal how far apart the two sides are on remedies. A $450 million penalty is noise for a company generating tens of billions in annual profit. The $30 billion demand signals the FTC's view that the conduct was systemic enough to warrant structural dismantling or an extraordinary financial penalty.
This case will determine whether large tech companies can use M&A as a defensive moat against competition, or whether antitrust enforcement can force them to compete on product merit. If Meta loses decisively, it will reset expectations for what regulators demand in future tech acquisitions and consent decrees.