WASHINGTON: Meta CEO Mark Zuckerberg took to the witness stand on the first day of a historic antitrust trial to defend his company against allegations it illegally monopolized the social media market.
The trial could force the tech giant to break off Instagram and WhatsApp, startups Meta bought more than a decade ago that have since grown into social media powerhouses.
FTC attorney Daniel Matheson called Zuckerberg as the first witness, as it seeks to prove that Meta acquired Instagram and WhatsApp to preserve its monopoly in the social networking space.
At the hearing, Matheson focused on a communication sent to colleagues that illustrated Zuckerberg’s frustration with a lack of progress on developing a photo-sharing app to compete with Instagram’s.
“The way I read this message is that I’m not happy about how we’re executing on that project,” Zuckerberg said.
Matheson followed up by asking if that was because of Instagram’s rapid growth.
“That does seem to be what I’m highlighting,” Zuckerberg said, adding that he’s always urging his teams to do better.
Later in the day, Zuckerberg appeared frustrated when Matheson asked him about his concerns expressed about how fast Instagram was growing.
“I don’t have the full timeline of Instagram’s development in my head,” Zuckerberg said, when Matheson asked him about his mention of its growth. “You could probably get that better from somebody else.”
Matheson also asked about comments of plans to keep Instagram running, while focusing on Facebook and not investing in Instagram. Zuckerberg said he wouldn’t characterize it as a plan, and he insisted that Instagram wasn’t neglected.
“In practice, we ended up investing a ton in it after we acquired it,” Zuckerberg, who testified most of the afternoon, said.
In opening statements, Matheson said Meta has used its position to generate enormous profits even as consumer satisfaction has dropped. He said Meta was “erecting a moat” to protect its interests by buying the two startups.
Mark Hansen, an attorney for Meta, said the FTC was making a “grab bag” of arguments that were wrong. He said Meta has plenty of competition and has made improvements to the startups it acquired.
“This lawsuit, in summary, is misguided,” Hansen said, adding: “anyway you look at it, consumers have been the big winners.”
The trial will be the first big test of President Donald Trump’s Federal Trade Commission’s ability to challenge Big Tech. The lawsuit was filed against Meta — then called Facebook — in 2020, during Trump’s first term. It claims the company bought Instagram and WhatsApp to squash competition and establish an illegal monopoly in the social media market.
Meta, the FTC argues, has maintained a monopoly by pursuing Zuckerberg’s strategy, “expressed in 2008: ‘It is better to buy than compete.’ True to that maxim, Facebook has systematically tracked potential rivals and acquired companies that it viewed as serious competitive threats.”
Facebook also enacted policies designed to make it difficult for smaller rivals to enter the market and “neutralize perceived competitive threats,” the FTC says in its complaint, just as the world shifted its attention to mobile devices from desktop computers.
Facebook bought Instagram — then a scrappy photo-sharing app with no ads and a small cult following — in 2012. The $1 billion cash and stock purchase price was eye-popping at the time, though the deal’s value fell to $750 million after Facebook’s stock price dipped following its initial public offering in May 2012.
Instagram was the first company Facebook bought and kept running as a separate app. Up until then, Facebook was known for smaller “acqui-hires” — a type of popular Silicon Valley deal in which a company purchases a startup as a way to hire its talented workers, then shuts the acquired company down. Two years later, it did it again with the messaging app WhatsApp, which it purchased for $22 billion.
WhatsApp and Instagram helped Facebook move its business from desktop computers to mobile devices, and to remain popular with younger generations as rivals like Snapchat (which it also tried, but failed, to buy) and TikTok emerged. However, the FTC has a narrow definition of Meta’s competitive market, excluding companies like TikTok, YouTube and Apple’s messaging service from being considered rivals to Instagram and WhatsApp.
Meta, meanwhile, says the FTC’s lawsuit “defies reality.”
“The evidence at trial will show what every 17-year-old in the world knows: Instagram, Facebook and WhatsApp compete with Chinese-owned TikTok, YouTube, X, iMessage and many others. More than 10 years after the FTC reviewed and cleared our acquisitions, the Commission’s action in this case sends the message that no deal is ever truly final. Regulators should be supporting American innovation, rather than seeking to break up a great American company and further advantaging China on critical issues like AI,” the company said in a statement.
In a filing last week, Meta also stressed that the FTC “must prove that Meta has monopoly power in its claimed relevant market now, not at some time in the past.” This, experts say, could also prove challenging since more competitors have emerged in the social media space in the years since the company bought WhatsApp and Instagram.
Meta’s fate will be decided by US District Judge James Boasberg, who late last year denied Meta’s request for a summary judgment and ruled that the case must go to trial.
While the FTC may face an uphill battle in proving its case, the stakes are high for Meta, whose advertising business could be cut in half if it’s forced to spin off Instagram.
Meta isn’t the only technology company in the sights of federal antitrust regulators, Google and Amazon face their own cases. The remedy phase of Google’s case is scheduled to begin on April 21. A federal judge declared the search giant an illegal monopoly last August.
Meta CEO Mark Zuckerberg takes the stand in historic antitrust trial
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Meta CEO Mark Zuckerberg takes the stand in historic antitrust trial
UN aviation agency finds Russia responsible for 2014 downing of airliner over Ukraine
MONTREAL: The United Nations aviation agency said Monday that Russia was responsible for the downing of a Malaysian Airways jetliner over Ukraine in 2014, with the death of 298 people.
The International Civil Aviation Organization, based in Montreal, said claims brought by Australia and the Netherlands over the shooting down of Flight MH17 on July 17, 2014 were “well founded in fact and in law.”
US House Republicans seek to kill EV tax credit, loan program
- The US Treasury in 2024 awarded more than $2 billion in point-of-sale rebates for EVs
WASHINGTON: Republicans in the US House of Representatives on Monday proposed killing the electric vehicle tax credit and repealing fuel efficiency rules designed to prod automakers into building more zero-emission vehicles as part of a broad-based tax reform bill.
The proposal, which is set for a House Ways and Means Committee hearing on Tuesday, would repeal a $7,500 new-vehicle tax credit and a $4,000 used-vehicle credit on Dec. 31, although it would maintain the new-vehicle credit for an additional year for automakers that have not yet sold 200,000 EVs.
The president of the Electric Drive Transportation Association, Genevieve Cullen, criticized the proposal, saying that plans “to abandon US leadership in energy innovation by gutting federal investment in electrification are catastrophically short-sighted.”
The proposal, she said, would deliver “an enormous market advantage” to competitors like China and threaten US manufacturing and jobs.
The US Treasury in 2024 awarded more than $2 billion in point-of-sale rebates for EVs.
The proposal leaves in place a key battery production tax credit for automakers and battery makers, but a new provision would bar the credit for vehicles produced with components made by some Chinese companies or under a license agreement with Chinese firms.
The provision, which would take effect in 2027, could bar credits for cars powered by Chinese battery technology licensed by American companies such as Ford Motor or Tesla .
House Republicans also propose to kill a loan program that supports the manufacture of certain advanced technology vehicles. It would rescind any unobligated funding and rescind corporate average fuel economy standards and greenhouse gas emission rules for 2027 and beyond. That portion will be taken up by the Energy and Commerce Committee.
Among outstanding loans finalized in President Joe Biden’s last weeks in office are $9.63 billion to a joint venture of Ford Motor and South Korean battery maker SK On for construction of three battery manufacturing plants in Tennessee and Kentucky; $7.54 billion to a joint venture of Chrysler-parent Stellantis and Samsung SDI for two EV lithium-ion battery plants in Indiana; and $6.57 billion to Rivian for a plant in Georgia to begin building smaller, less expensive EVs in 2028.
US military replaces B-2 bombers that were sent amid Middle East tensions
- Experts say that this had put the B-2s in a position to operate in the Middle East
WASHINGTON: The US military is replacing its B-2 bombers with another type of bomber at a base in the Indo-Pacific that was seen as being in an ideal location to operate in the Middle East, US officials told Reuters on Monday. The Pentagon deployed as many as six B-2 bombers in March to a US-British military base on the Indian Ocean island of Diego Garcia, amid a US bombing campaign in Yemen and mounting tensions with Iran.
Experts say that this had put the B-2s, which have stealth technology and are equipped to carry the heaviest US bombs and nuclear weapons, in a position to operate in the Middle East.
The officials, speaking on the condition of anonymity, said the B-2 bombers were being replaced by B-52 bombers.
The Pentagon said it did not comment on force posture adjustments as a matter of policy.
Fresh talks between Iranian and US negotiators to resolve disputes over Tehran’s nuclear program ended in Oman on Sunday, with further negotiations planned. The fourth round of talks took place ahead of President Donald Trump’s planned visit to the Middle East. Trump, who has threatened military action against Iran if diplomacy fails, has restored a “maximum pressure” campaign on Tehran since returning to the White House in January.
Tehran is willing to negotiate some curbs on its nuclear work in return for the lifting of sanctions, according to Iranian officials, but ending its enrichment program or surrendering its enriched uranium stockpile are among what the officials have called “Iran’s red lines that could not be compromised” in the talks. Additionally, Trump announced last week that a deal had been reached to stop bombing Yemen’s Houthi group. The B-2 bombers had been used to carry out strikes against the Iran-backed group.
UN chief warns of ‘painful’ reforms, including staff cuts
- The proposed restructuring within the Secretariat includes merging units from the Department of Political and Peacebuilding Affairs (DPPA) with the Department of Peace Operations (DPO)
UNITED NATIONS, United States: United Nations chief Antonio Guterres on Monday said reforming the global body will require “painful” changes, including staff reductions, to improve efficiency and deal with chronic budget constraints exacerbated by Trump administration policies.
In March, the secretary-general launched the UN80 initiative to streamline operations.
“Our shared goal has always been to make our organization more efficient, to simplify procedures, eliminate overlaps, and enhance transparency and accountability,” Guterres said Monday during an update to member states.
“The liquidity crisis we now face is not new. But today’s financial and political situation adds even greater urgency to our efforts.”
He warned “we know that some of these changes will be painful for our UN family.”
The proposed restructuring within the Secretariat includes merging units from the Department of Political and Peacebuilding Affairs (DPPA) with the Department of Peace Operations (DPO).
“I believe we’ll be able to eliminate 20 percent of the posts of the two departments,” he said, adding that the level of reduction outlined for DPPA and DPO “must be seen as a reference for the wider UN80 exercise.”
Guterres also raised the possibility of relocating positions from New York and Geneva to less expensive cities.
Member states will have to decide on their own changes.
The internal workload has also stretched the capacity of the UN system “beyond reason,” Guterres said.
“It is as if we have allowed the formalism and quantity of reports and meetings to become ends in themselves. The measure of success is not the volume of reports we generate or the number of meetings we convene,” he said.
Guterres called on member states to make tough decisions.
“Many of you have agreed that this must be the moment to be bold and ambitious. That is what our Organization needs — and that is what our times demand,” he said.
“Make no mistake — uncomfortable and difficult decisions lie ahead. It may be easier — and even tempting — to ignore them or kick the can down the road. But that road is a dead end.”
In a memo seen recently by AFP, an internal working group in charge of the UN80 initiative suggested some major reforms, including merging UN agencies.
Guterres did not directly address those changes but indicated that “clusters” working on similar issues would propose reforms, and potentially some structural changes.
Trump administration welcomes 59 white South Africans as refugees
- South Africa’s government says the US allegations that the white minority Afrikaners are being persecuted are “completely false,” the result of misinformation and an inaccurate view of the country
DULLES, Virginia: The Trump administration on Monday welcomed a group of 59 white South Africans as refugees, saying they face discrimination and violence at home, which the country’s government strongly denies.
The decision to admit the Afrikaners also has raised questions from refugee advocates about why they were admitted when the Trump administration has suspended efforts to resettle people fleeing war and persecution who have gone through years of vetting.
Many in the group from South Africa — including toddlers and other small children, even one walking barefoot in pajamas — held small American flags as two officials welcomed them to the United States in an airport hangar outside Washington. The South Africans were then leaving on other flights to various US destinations.
A group of 49 Afrikaners had been expected, but the State Department said Monday that 59 had arrived.
“I want you all to know that you are really welcome here and that we respect what you have had to deal with these last few years,” Deputy Secretary of State Christopher Landau said.
President Donald Trump told reporters earlier Monday that he’s admitting them as refugees because of the “genocide that’s taking place.” He said that in post-apartheid South Africa, white farmers are “being killed” and he plans to address the issue with South African leadership next week.
That characterization has been strongly disputed by South Africa’s government, experts and even the Afrikaner group AfriForum, which says farm attacks are not being taken seriously by the government.
South Africa’s government says the US allegations that the white minority Afrikaners are being persecuted are “completely false,” the result of misinformation and an inaccurate view of the country. It cited the fact that Afrikaners are among the richest and most successful people in the country.
The view from South Africa
Speaking at a business conference in Ivory Coast, South African President Cyril Ramaphosa said Monday that he spoke with Trump recently and told him his administration had been fed false information by groups who were casting white people as victims because of efforts to right the historical wrongs of colonialism and South Africa’s previous apartheid system of forced racial segregation, which oppressed the Black majority.
“I had a conversation with President Trump on the phone and he asked me, ‘What’s going on down there?’ and I told him that what you are being told by those people who are opposed to transformation back in South Africa is not true,” Ramaphosa said.
Afrikaners make up South Africa’s largest white group and were the leaders of the apartheid government, which brutally enforced racial segregation for nearly 50 years before ending it in 1994. While South Africa has been largely successful in reconciling its many races, tensions between some Black political parties and some Afrikaner groups have remained.
The Trump administration has falsely claimed white South Africans are having their land taken away by the government under a new expropriation law that promotes “racially discriminatory property confiscation.” No land has been expropriated.
Trump has promoted the allegation that white farmers in South Africa are being killed on a large scale as far back as 2018 during his first term.
Conservative commentators have promoted the allegation about a genocide against white farmers, and South African-born Trump ally Elon Musk has posted on social media that some politicians in the country are “actively promoting white genocide.”
South Africa has extremely high levels of violent crime, and white farmers have been killed in rural Afrikaner communities. It has been a problem for decades. The government condemns those killings but says they are part of the country’s problems with crime.
“There is no data at all that backs that there is persecution of white South Africans or white Afrikaners in particular who are farmers,” South African Foreign Minister Ronald Lamola said Monday. “White farmers get affected by crime just like any other South Africans who do get affected by crime. So this is not factual, it is without basis.”
Trump administration says white South Africans have been targeted
Landau said many of those who arrived Monday experienced “threatening invasions of their homes, their farms and a real lack of interest or success of the government in doing anything about this situation.”
They all had met stringent vetting standards, including the ability to assimilate into American culture, Landau said. Critics of the refugee program suggest that refugees aren’t properly vetted, though supporters say they go through some of the strictest vetting of anyone seeking to come to America.
Trump indefinitely suspended the refugee resettlement program — which historically had widespread bipartisan support — on his first day in office. A month later, he announced a plan to resettle white South African farmers and their families as refugees.
Supporters of the refugee program question how the administration can justify admitting this small group while keeping out others from conflict zones around the world.
Sen. Jeanne Shaheen, a New Hampshire Democrat, called it an effort to “rewrite history.”
“The Administration must clarify why these individuals qualify for refugee status and resettlement in the US and why they have been prioritized over refugees like Afghans, Burmese Rohingya and Sudanese who have fled their homes due to conflict and persecution,” she said in a statement Monday.
Who can come from South Africa under Trump’s order
According to the US Embassy in South Africa, applicants have to be South African citizens who are of Afrikaner ethnicity or a member of a racial minority, and they have to be able to show a history of or a fear of persecution.
Afrikaners, who are the descendants of mainly Dutch and French colonial settlers, number around 2.7 million among South Africa’s population of 62 million, which is more than 80 percent Black.
The US refugee program was created by Congress in 1980, and groups have sued to restart it after Trump’s halt.
Traditionally, to qualify as a refugee, applicants must demonstrate a well-founded fear of persecution due to race, religion, nationality, membership in a particular social group, or political opinion. Refugees are distinct from asylum-seekers because refugees must be outside of the US to qualify.
A network of resettlement agencies generally helps refugees settle in their new homes, and they get 90 days of federal assistance for things like rent. The Episcopal Church’s migration service, however, is refusing a directive from the federal government to help resettle the white South Africans, citing the church’s longstanding “commitment to racial justice and reconciliation.”
