Did Meta Allow TikTok To Grow in Order To Dilute the FTC's Antitrust Case?

In the high-stakes chess game of social media dominance, an interesting theory has emerged regarding Meta's shifting stance toward TikTok. The question being asked: Did Meta deliberately ease pressure on TikTok's expansion in the United States to bolster its defense against the Federal Trade Commission's antitrust lawsuit?

The Timeline Raises Questions

The sequence of events certainly invites scrutiny. Back in 2019, when TikTok was gaining significant momentum in the American market, Meta CEO Mark Zuckerberg appeared to be actively campaigning against the Chinese-owned platform.

In October 2019, Zuckerberg delivered a speech at Georgetown University where he specifically called out TikTok for censoring content at the behest of the Chinese government, asking pointedly: "Is that the internet we want?"

That same month, Zuckerberg met privately with then-President Donald Trump and various U.S. senators. Within days of these meetings, the U.S. government launched a national security review of ByteDance's acquisition of Musical.ly — the platform that evolved into TikTok.

The following year, the Trump administration pushed for TikTok to be sold to an American owner or face a ban, citing national security concerns. This initiative eventually lost momentum under the Biden administration in 2021, only to be revived in different form with the current TikTok sell-off legislation.

The FTC Case Changes the Calculus

Here's where the timeline becomes particularly interesting. In 2020, the FTC filed its antitrust lawsuit against Meta, alleging the company had illegally maintained a social networking monopoly through anticompetitive practices, including the strategic acquisition of potential competitors.

After this point, Meta's public stance on TikTok seemed to shift dramatically. The company appeared to back off its lobbying efforts against TikTok, despite having previously been quite vocal about the perceived threats posed by the platform.

Fast forward to 2023-2024, and Meta is now actively using TikTok's success as a cornerstone of its defense against the FTC's monopoly allegations. As Meta spokesman Andy Stone has emphasized, TikTok's explosive growth significantly undermines the FTC's argument that Meta holds a monopoly in the digital advertising and social media markets.

A Strategic Calculation?

The theory is provocative: Did Meta make a calculated decision to allow a competitor to flourish in order to create a stronger legal defense?

If Zuckerberg and Meta's lobbying efforts had succeeded in forcing TikTok out of the U.S. market in 2019, the company would now lack its strongest counterargument to the FTC's monopoly claims. Without TikTok as evidence of robust competition, Meta would be far more vulnerable to the argument that it systematically eliminated potential rivals through acquisition or replication.

Of course, Meta couldn't have anticipated the meteoric rise of TikTok or predicted the power of its algorithm to capture user attention so effectively. But the company may have recognized that having a viable competitor in the marketplace served its legal interests better than maintaining complete dominance.

The Current Legal Battle

The FTC's case against Meta is currently being heard in federal court. The trial, which began on November 5, 2023, represents one of the most significant antitrust challenges in the tech industry, with potential ramifications that could force Meta to divest Instagram and WhatsApp if the court rules against the company.

Meta's defense heavily emphasizes the competitive nature of the social media landscape, pointing specifically to TikTok's massive success as evidence that the market remains dynamic and open to new entrants.

The most recent development in this ongoing case came in August 2024, when the FTC requested additional documents from Meta regarding its business operations. The court proceedings continue to move forward, with final arguments expected in the coming months.

Broader Implications for the Industry

This situation highlights the complex interplay between competition policy, national security concerns, and corporate strategy in the tech sector. If Meta did indeed make a strategic pivot to allow TikTok to thrive for its own legal benefit, it represents a fascinating example of how antitrust pressures can reshape competitive dynamics in unexpected ways.

For marketers and business leaders, the lesson may be that the competitive landscape in social media is shaped not just by user preferences and technological innovation, but also by regulatory pressures and legal considerations that influence how the major platforms position themselves against rivals.

As the FTC case progresses, we'll be watching closely to see how Meta's TikTok defense holds up in court, and whether this gambit—if indeed it was one—ultimately pays off for Zuckerberg and his company.