The Federal Trade Commission (FTC) has announced its intent to appeal a U.S. District Court ruling that dismissed its antitrust case against Meta Platforms Inc., reintroducing significant regulatory uncertainty for the social media giant. The appeal, filed with the U.S. Court of Appeals in Washington, D.C., challenges a November 2025 decision by Judge James Boasberg, who ruled the FTC failed to prove Meta maintained an illegal monopoly.
The core of the FTC's argument centers on Meta's acquisitions of Instagram in 2012 and WhatsApp in 2014. The agency alleges these purchases were used to unlawfully maintain monopoly power in the social networking market. The appeal contends the lower court misapplied the law by including competitors like TikTok and YouTube in the market definition, which diluted Meta's perceived market share to below 50%—under the typical threshold for inferring monopoly power. The FTC argues the court should have focused on market conditions at the time of the acquisitions.
The news immediately impacted Meta's stock (META), which closed at $604.12 on January 20, 2026, marking a 2.6% daily decline. The stock showed modest recovery in pre-market trading the following day. Analysts note the appeal signals that antitrust scrutiny over major technology platforms is far from over and could take months to resolve, prolonging investor caution.
Beyond Meta, the case has broader implications for tech mergers and acquisitions. It underscores that regulatory agencies are closely monitoring dominant players, potentially causing large platforms to exercise more caution in future deals. This could create opportunities for mid-sized tech companies and investors due to reduced bidding pressure from giants like Meta. The FTC's actions align with the stricter 2023 FTC and Department of Justice Merger Guidelines, which suggest companies with as little as a 30% market share may face scrutiny.
