Meta accused of withholding information from feds

investmentnews.com:

Meta Platforms Inc. withheld information from federal regulators during their original reviews of the Instagram and WhatsApp acquisitions, the US Federal Trade Commission said in a court filing as part of a lawsuit seeking to break up the social networking giant. 

The company formerly known as Facebook bought photo-sharing app Instagram in 2012 and the messaging app WhatsApp in 2014. Both transactions were scrutinized by the FTC at the time before they closed – Instagram as part of an in-depth review and WhatsApp with a simple 30-day one. 

In the years since, the agency has faced significant criticism for allowing the deals to move forward. In 2020, the antitrust agency sued Meta alleging that it monopolized the personal social networking market by buying up emerging rivals. Meta is seeking to have the case thrown out before a trial, arguing that it has invested billions in the apps and that the FTC shouldn’t be able to renege on its prior approval of the mergers.

In its filing Tuesday, however, the FTC said the case involves “information Meta had in its files and did not provide” during the original reviews.

“At Meta’s request the FTC undertook only a limited review” of the deals, the agency said. “The FTC now has available vastly more evidence, including pre-acquisition documents Meta did not provide in 2012 and 2014.”

A Meta spokesperson said the FTC has failed to provide evidence to support its claims. 

“The evidence instead shows that Meta faces fierce competition and that Meta’s significant investment of time and resources in Instagram and WhatsApp has benefited consumers by making the apps into the services millions of users enjoy today for free,” spokesperson Chris Sgro said in a statement. “The FTC has done