Tech

Meta antitrust trial: FTC challenges Instagram, WhatsApp acquisitions

Meta faces antitrust trial as FTC claims it illegally monopolises social media by acquiring Instagram and WhatsApp.

Published

1 week ago

April 15, 2025

Ahron Young

Meta faces antitrust trial as FTC claims it illegally monopolises social media by acquiring Instagram and WhatsApp.

In Short

The FTC is suing Meta for allegedly monopolising social media and is seeking to force it to sell Instagram and WhatsApp, which would impact its advertising revenue.

Meta contends it faces competition from platforms like TikTok and YouTube, while the trial highlights ongoing challenges in regulating digital monopolies.

The Federal Trade Commission (FTC) has initiated an antitrust trial against Meta, alleging it has monopolised the social media market. The FTC seeks to compel Meta to divest Instagram and WhatsApp, which could critically harm the company’s advertising revenue.

During the trial, FTC attorney Daniel Matheson stated that Meta opted for acquisitions over competition.

Meta argues that it faces significant competition from platforms like TikTok and YouTube, highlighting that consumer behaviour shows people switch between these platforms.

Consumer substitution

Mark Hansen, Meta’s lawyer, noted that consumer substitution is evident, as demonstrated during a TikTok outage when users turned to Instagram. Moreover, discussions indicate that Meta CEO Mark Zuckerberg has attempted to negotiate a settlement, although no agreement has been reached.

The case’s history dates back to 2020 when an original lawsuit was dismissed for lack of evidence. An amended complaint was later accepted under a new administration. The FTC argues that Facebook, Instagram, and WhatsApp dominate personal social networking, while other platforms serve different interests.

The trial is expected to last around eight weeks. If the court finds Meta liable, it could lead to significant remedies, including a potential breakup.

Analysts indicate that losing Instagram could severely impact Meta’s business, as Instagram accounts for a significant portion of its U.S. sales.

Tech

Nvidia to build AI supercomputers in the U.S. for first time

Nvidia invests $500 billion in U.S. AI supercomputers, shifting production to Texas to strengthen supply chains and boost domestic growth amid rising tariffs and national tech pressures.

Published

4 days ago

April 18, 2025

Veronica Dudo

Nvidia invests $500 billion in U.S. AI supercomputers, shifting production to Texas to strengthen supply chains and boost domestic growth amid rising tariffs and national tech pressures.

Nvidia to build AI supercomputers in the U.S. for the first time — a $500 billion move that could redefine the global tech industry.

With new tariffs on imports from China and Taiwan, the chip giant is shifting production to Texas, partnering with Foxconn and Wistron.

Nvidia says the decision will strengthen its supply chain and boost domestic economic growth.

The announcement comes amid growing pressure to secure national tech infrastructure and reduce reliance on Asia. How will this impact jobs, prices, and America’s AI ambitions?

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Tech

‘Stuck in the past’: Has Apple lost its edge?

Apple, once an innovator, faces criticism for stale updates and designs, prompting comparisons to 1980s IBM and calls for Tim Cook’s departure.

Published

6 days ago

April 16, 2025

Ahron Young

Apple, once an innovator, faces criticism for stale updates and designs, prompting comparisons to 1980s IBM and calls for Tim Cook’s departure.

Apple, once a symbol of innovation, is now under fire for uninspiring product updates.

The headline “Has Apple lost its edge? Critics say it’s stuck in the past” captures growing frustration over recycled designs and underwhelming features.

From the original iPhone to the lacklustre Apple Intelligence, critics now compare the company to IBM in the 1980s. Is it time for Tim Cook to step aside?

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Tech

OpenAI explores social network to rival Elon Musk

OpenAI is considering a social network to rival Musk’s X, spurred by the success of its new image-generation feature.

Published

7 days ago

April 16, 2025

Ahron Young

OpenAI is considering a social network to rival Musk’s X, spurred by the success of its new image-generation feature.

In Short

OpenAI is considering creating a social network to compete with Elon Musk’s X and Meta’s Instagram, following high demand for its new image-generation tool.

The company has raised $40 billion in funding and is facing increased server demands, prompting efforts to temporarily limit the tool’s usage.

OpenAI is contemplating the development of a social network to rival Elon Musk’s X and Meta’s Instagram, according to an informed source.

This initiative is reportedly in the early stages and has emerged following the success of OpenAI’s latest image-generation tool, which has stressed the company’s servers.

The announcement was first reported by The Verge, while OpenAI has chosen not to comment on the matter.

Image-generation

In March, OpenAI launched its new image-generation feature designed to create various visual content, including diagrams, infographics, and logos. This tool also enables users to produce artistic renditions from their uploaded images.

Recently, images generated by this feature have gained significant traction on social media, with OpenAI’s CEO Sam Altman recently using one for his profile photo on X. Altman noted the overwhelming popularity has led to increased server demands.

He mentioned that the company is currently looking to limit the feature’s usage temporarily while they enhance its efficiency.

The generative AI sector is highly competitive, particularly with the involvement of Musk’s xAI, which recently acquired X. The relationship between Altman and Musk has become contentious, particularly surrounding OpenAI’s move to become a for-profit entity.