For Meta Platforms, (META) the outlook for the near future is looking increasingly complicated as negative headlines pile up.
The social media giant isn’t off to a good start for the year, despite CEO Mark Zuckerberg’s attempts to stay on President Donald Trump’s good side. Following Trump’s election, experts speculated that tech companies would benefit from his policies but so far, his recent tariffs are pushing down most sectors.
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Despite some momentum during the first month of 2025, META stock has been trending downward since mid-February and is down 16% year-to-date. But things may be about to get even worse for both Meta and Zuckerberg.
The company is getting ready to face off against a government agency in federal court in what promises to be a historic legal battle. If the verdict doesn’t go Meta’s way, the consequences could be significant.
Meta is no stranger to legal battles, nor is Zuckerberg. Facebook, the social media platform around which the company is built, began with a well-publicized lawsuit brought against the young CEO by Cameron and Tyler Winklevloss who accused him of stealing their idea.
In the years since, Meta has been accused of quite a bit of illicit activity, often involving data privacy and users’ safety. The company has managed to avoid any real consequences, apart from fines and loss of users, but in the coming weeks, a court case is scheduled to begin, and everything is on the line for the social media leader.
Related: Meta’s AI ambitions suffer a setback
On April 14, Meta will head to federal court to settle a lawsuit brought against it by the U.S. Federal Trade Commission (FTC). The independent government agency is tasked with enforcing antitrust laws and promoting consumer protection policies, two areas that Meta has been accused of violating.
In this case, the FTC has accused Meta of committing antitrust violations by unfairly stifling competition in its industry. More specifically, the agency alleges that Zuckerberg’s company acquired startups Instagram and WhatsApp before they could become fully developed businesses in the name of eliminating competition in its market.
According to the New York Times, the case could be resolved with a settlement on Meta’s part. But Meta seems intent on maintaining the upper hand, as indicated by Zuckerberg lobbying President Trump to settle the matter, an effort that he has reportedly increased recently.
Described as “the most serious antitrust challenge in Meta’s history,” this case threatens to spell the end of Meta’s status as an industry leader. It could end in the company being forced to unwind its acquisitions of both Instagram and WhatsApp, effectively breaking up the empire that has shaped the modern social media landscape.
