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Meta’s Zuckerberg Reportedly Offered $450 Million to Settle FTC Antitrust Case
In a move highlighting the ongoing antitrust scrutiny of Big Tech, Meta, formerly Facebook, reportedly presented a settlement offer of just $450 million to the Federal Trade Commission (FTC) to resolve a landmark antitrust case. This legal challenge could potentially force the tech giant to divest key assets like Instagram and WhatsApp.
Low-Ball Settlement Offer Rejected by FTC Chair
According to the Wall Street Journal, citing individuals familiar with the matter, Mark Zuckerberg conveyed the offer during a late March call with FTC Chairman Andrew Ferguson. The proposed sum was significantly lower than the $30 billion initially sought by the regulatory agency.
Sources indicated that during the conversation, the Meta CEO expressed confidence that then-President Trump would support his position regarding the FTC investigation.
FTC Demands Billions and Restrictions on Meta’s Practices
Ferguson reportedly dismissed the initial settlement figure as inadequate. He indicated that the FTC would not consider any agreement valued at less than $18 billion, coupled with a consent decree to prevent Meta from engaging in anticompetitive conduct.
In response, Zuckerberg reportedly increased Meta’s offer, bringing it closer to $1 billion. However, these negotiations ultimately failed to produce a settlement, and the antitrust trial commenced as scheduled, with Zuckerberg appearing as the initial witness.
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Zuckerberg Faces Intense Questioning in Antitrust Trial
FTC attorneys subjected Zuckerberg to rigorous questioning for three consecutive days as the agency seeks to compel Meta to spin off Instagram and WhatsApp into independent entities. Court filings suggest that the FTC anticipated Zuckerberg’s testimony to exceed that of any other witness.
FTC Alleges Monopoly in Social Networking
The FTC contends that Meta has unlawfully maintained a monopoly in the realm of social media platforms focused on personal connections. The agency identifies Snapchat as its primary competitor in this specific market, while categorizing platforms like TikTok and YouTube, owned by Google, as belonging to distinct market segments.
Federal regulators assert that Zuckerberg implemented a strategy of acquiring or undermining nascent companies, specifically referencing the acquisitions of Instagram and WhatsApp, to preempt potential threats to Meta‘s dominance.
Meta has countered these claims, asserting that it directly competes with TikTok for users’ attention and engagement.
Meta Defends Competitive Landscape, Dismisses FTC Case
Meta declined to officially comment on the reported settlement discussions. Company spokeswoman Dani Lever stated that Meta is “prepared to prevail at trial.”
Lever further asserted in a statement, “We haven’t been hesitant in explaining why it lacks rationale for the FTC to pursue a trial that necessitates proving what every 17-year-old in America understands to be illogical — that Instagram does not compete with TikTok.”
Representatives for the FTC and the White House have not yet responded to requests for comment.
Zuckerberg’s Outreach to Trump Administration
In recent months, Zuckerberg has reportedly taken significant steps to engage with the Trump administration. This included participating in the then-President’s inauguration alongside other technology sector leaders and making multiple visits to the White House since January.
During these meetings, it is reported that Zuckerberg directly appealed to Trump to intervene and facilitate a settlement in the FTC case.
Historical Context: Record Fines and Antitrust Scrutiny
A $30 billion settlement would represent the largest of its kind in the FTC‘s history. Previously, in 2019, the agency imposed a record $5 billion penalty on Meta for violations of user data privacy related to the Cambridge Analytica scandal.
Sources familiar with the negotiations suggested to The Post that Zuckerberg’s comparatively low settlement offers indicated Meta‘s assessment of the FTC‘s case as weak.
Trump Advisors Urge Tough Stance on Meta
Conversely, individuals within Trump’s circle, critical of Big Tech, have reportedly advocated for a firm stance against Meta.
This perspective is shared by FTC Chairman Ferguson, who, along with Justice Department antitrust officials and advisors, met with President Trump to discuss the matter.
Internal Concerns Over Breakup Raised in Meta Documents
During Zuckerberg’s court appearance, FTC attorneys presented a 2018 internal document where he expressed concerns about acquiring Instagram. The document revealed Zuckerberg’s consideration of restructuring Facebook to mitigate potential regulatory action during the Trump administration’s initial term.
“I contemplate whether we should contemplate the drastic measure of spinning Instagram out as a separate entity,” Zuckerberg stated in the document.
He further acknowledged, “As demands to dismantle large tech companies escalate, there exists a significant probability that we will be compelled to spin out Instagram and potentially WhatsApp within the next 5-10 years regardless.”
Emails Reveal Intent to Neutralize Competition
Zuckerberg also faced challenging inquiries regarding other internal communications, notably a 2012 email exchange where he acknowledged to former CFO David Ebersman that the acquisition of Instagram would effectively “neutralize a competitor.”
Facebook acquired Instagram in 2012 for $1 billion and WhatsApp in 2014 for approximately $19 billion.