Media: Zuckerberg’s $450 million settlement offer rejected as Meta faces antitrust trial

Mark Zuckerberg’s attempt to settle Meta's long-running antitrust case with the Federal Trade Commission (FTC) ahead of trial has failed, setting the stage for a high-profile legal battle.

In late March, Zuckerberg offered a $450 million settlement, a fraction of the FTC’s $30 billion demand, as he sought to avoid trial over Meta's controversial acquisitions of Instagram and WhatsApp, Caliber.Az reports, citing The Wall Street Journal. 

Zuckerberg, confident in his relationship with US President Donald Trump, reportedly believed the ex-president would intervene on his behalf. “Mark bought his way out of competing, so I’m not surprised that he thinks he can buy his way out of law enforcement, too,” said former FTC Chair Lina Khan, who was nominated by President Joe Biden. Khan dismissed the $450 million offer as “delusional.”

Despite the weak settlement offer, Meta’s executives, including Zuckerberg, pursued an aggressive lobbying campaign, pushing for a resolution. "We haven’t been shy about explaining why it doesn’t make sense for the FTC to bring a case to trial that requires it to prove something every 17-year-old in America knows is absurd—that Instagram doesn’t compete with TikTok,” Meta spokeswoman Dani Lever remarked.

The FTC, however, remained steadfast, demanding no less than $18 billion in fines, with Chairman Andrew Ferguson finding Zuckerberg’s settlement offer insufficient. As the trial commenced, Zuckerberg reluctantly took the stand for several hours of questioning. One of the key moments involved a confrontation over Meta’s $1 billion purchase of Instagram, with the FTC suggesting the company aimed to “neutralize” a competitor.

The lawsuit, initially filed in December 2020 during the final weeks of Trump’s presidency, accuses Meta of stifling competition by acquiring potential rivals. Meta disputes these claims, citing its competition with platforms like YouTube and X, and pointing out that the FTC had cleared the Instagram and WhatsApp deals over a decade ago.

Zuckerberg and other senior Meta officials have worked closely with Trump and his aides in recent months to push for a deal. Despite repeated meetings and pressure, Trump ultimately sided with the FTC, giving the green light for the trial to proceed.

Zuckerberg's strained relationship with Trump, after years of attempting to rebuild ties, highlights the complex intersection of business, politics, and the fight for antitrust enforcement. As the trial progresses, it remains to be seen whether Meta can persuade the court or face the hefty financial penalties the FTC seeks.

By Aghakazim Guliyev