Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Meta Faces U.S. and Canadian Legal Pressure
Antitrust | April 21, 2025
Image: Freepik/upklyak
Meta Faces U.S. Monopoly Trial and Rising Global Scrutiny
The U.S. Federal Trade Commission (FTC) first sued Facebook (now called Meta Platforms Inc.) in December 2020, claiming it broke competition laws by buying Instagram and WhatsApp to suppress competition and maintain a monopoly in personal social media markets. The case was renewed in 2021 with more evidence and the trial started on April 14, 2025, with Mark Zuckerberg already on the stand in the U.S. District Court for the District of Columbia.
The FTC argues Meta bought Instagram for $1 billion in 2012 and WhatsApp for $19 billion in 2014 in what they call a 'buy or bury' strategy to dominate the market, which it now controls -see FTC opening statement slides:
- 78% of monthly active users (MAUs)
- 77% of daily active users (DAUs)
- 85% of total user time spent on social platforms in the U.S.
See: Meta to Appeal €798M EU Fine for Antitrust Violations
During the trial, FTC presented internal messages/texts in 2012 from CEO Mark Zuckerberg, saying:
“It is better to buy than compete.”
The FTC now seeks a court order that could force Meta to breaking-up or divesting Instagram and WhatsApp entirely.
Meta Says Not a Monopoly, Just Competition
On April 13, 2025 in an official Meta blog post, Meta’s Chief Legal Officer Jennifer Newstead says that the FTCs case is 'weak' and that the lawsuit is wrong, saying it ignores how competitive the tech space has become. She argues that platforms like TikTok, YouTube, Snapchat and others fiercely compete for users' time and attention and that the FTC is using a narrow definition for personal social networking. She continues to say that Instagram and WhatsApp grew under Facebook/Meta's ownership because of the investments in safety, encryption, and performance.
Canadian Legal Action Against Meta
While Canada has not filed a federal antitrust lawsuit like the FTC, there are a number of legal and regulatory actions against Meta including:
1. Canada passed the Online News Act (Bill C-18) in June 2023 to help struggling news publishers that required big tech platforms like Meta to pay Canadian outlets when they share or link to their news. The expectation is that platforms like Meta and Google are to contribute at least $100 million CAD annually to support the sustainability of the Canadian news industry. Meta responded by blocking all Canadian news content from Facebook (now Meta) and Instagram feeds. So in response, News Media Canada and CBC filed a complaint with the Competition Bureau, arguing that Meta’s move was anti-competitive and harmful to the public, which the Bureau is currently investigating.
See: Implications of Meta’s Fact-Checking Exit
2. In 2024, four Ontario school boards sued Meta, TikTok’s parent ByteDance, and Snapchat’s owner Snap Inc., asking for over $4 billion CAD in damages. They claim the platforms were designed to be addictive, harming students mental health and learning. The companies tried to get the case thrown out but an Ontario judge ruled that the case proceed which now has expanded to 14 school boards. The boards say they've had to spend more funding on mental health and classroom supports because of social media's impact, and want the platforms redesigned to reduce harm to students.
3. In 2024, Canada passed the Digital Services Tax Act, introducing a 3% tax on revenue earned in Canada by large global tech companies like Meta. It applies to companies with more than €750 million in global revenue and at least C$20 million in Canadian digital revenue. The first payments are due by June 30, 2025. The tax was delayed for years during global talks but Canada moved ahead after little progress. Meta opposes the digital services tax, and it's not a secret that President Trump dislikes the tax too, and we can expect it to be raised when renegotiating the Canada-United-States-Mexico-Agreement (CUSMA) trade agreement. Revenue collection is proceeding with its first collection in 2025.
Implications for Fintechs and Investors
We're at a regulatory turning point against big tech. From Washington to Ottawa, digital platform dominance is in the spotlight. The outcome of Meta's trial, as well as Canada's legal pressures could lead to new enforcement models, investment opportunities, and an increase in competition in areas that have been long dominated by Big Tech.
See: Meta’s Vision to Swarm Facebook With AI Users
Also, smaller firms operating in AI, digital media, and user engagement platforms may find that regulators are more willing to intervene or step in/up if complaints are made.
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