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👩‍🍳 How we use AI at Tech in Asia, thoughtfully and responsibly.🧔‍♂️ A friendly human may check it before it goes live. More news hereA seven-week trial between Meta Platforms and the US Federal Trade Commission (FTC) has ended, with a decision now resting on US District Judge James Boasberg.The trial focused on whether Meta holds an illegal monopoly in social media.The FTC claims Meta’s purchases of Instagram in 2012 and WhatsApp in 2014 were meant to reduce competition and strengthen its dominance in personal social networking.If the FTC wins, Meta might have to sell one or both platforms, which could take years.Meta denies these monopoly allegations, saying it faces strong competition from apps like TikTok, YouTube, and iMessage.The company argues its services compete in various sectors beyond just social networking.Judge Boasberg’s ruling is expected later this year and will decide if Meta violated antitrust laws.If the FTC wins, a follow-up trial would determine remedies, with the FTC pushing for full divestiture and Meta calling the case weak.🔗 Source: Bloomberg🧠 Food for thought1️⃣ The crucial battleground of market definition in tech antitrust casesDefining the relevant market has historically been the decisive factor in tech antitrust cases, as seen in the Microsoft case where the court had to determine whether the browser market was separate from the operating system market 1.In Meta’s trial, this pattern continues with the FTC arguing for a narrow “Personal Social Networking Services” market focused on friends and family connections, while Meta pushes for a broader definition that would include TikTok, YouTube, and messaging services 2.The judge’s decision on market definition will likely determine the case outcome, as a narrower market definition would strengthen the FTC’s monopoly claims, while a broader definition incorporating short-form video and messaging services would dilute Meta’s market share 2.Legal experts note the FTC faces the challenge of proving that Meta’s services offer something unique that other platforms don’t provide, similar to how the government demonstrated Microsoft’s distinct control over operating systems in the 1990s 1.2️⃣ Historical precedents suggest mixed outcomes for tech breakupsThe potential breakup of Meta would follow significant historical precedents, most notably the 1984 AT&T divestiture which split the telecom giant into seven regional “Baby Bells” after a decade-long legal battle 3.Unlike quick resolutions, major antitrust cases typically span years. AT&T’s case began in 1974 and concluded in 1984, suggesting that even if the FTC wins, an actual Meta breakup could be years away 4.Historical data on corporate breakups shows mixed results for consumers. While AT&T’s dissolution led to lower long-distance rates, local service rates increased, suggesting that forced divestitures don’t always achieve their intended competitive benefits 5.The most relevant modern precedent—the 1998 Microsoft antitrust case—ultimately resulted not in a breakup but in behavioral remedies that restricted Microsoft’s business practices while keeping the company intact 6.Recent antitrust actions against Google, resulting in a 2024 ruling that found the company maintained an illegal monopoly in search, demonstrate regulators’ renewed determination to challenge tech giants’ market power 7.3️⃣ The evolving social media landscape complicates monopoly claimsRecent social media benchmark reports reveal significant shifts in user engagement patterns, with TikTok leading organic engagement at 2.50% while Instagram’s engagement has decreased to 0.50%, potentially undermining the FTC’s argument about Meta’s dominant market position 8.The average user now juggles nearly seven social platforms monthly, reflecting a fragmented attention economy that challenges the notion of any single company controlling social networking 9.Social media usage data from 2025 shows declining engagement rates across Facebook and Instagram despite their large user bases, suggesting users are distributing their attention across multiple platforms rather than remaining loyal to Meta’s ecosystem 10.Consumer media consumption habits have evolved significantly, with streaming and social video platforms increasingly capturing attention that was previously directed toward traditional social networking, potentially weakening the FTC’s market definition argument 11.The rise of AI-generated content and changing consumer preferences for authenticity have further reshaped the competitive landscape, introducing new variables that weren’t present when Meta acquired Instagram and WhatsApp a decade ago 9.Recent Meta developments