London Daily

Focus on the big picture.
Monday, Nov 17, 2025

The Government Didn’t Foresee How Facebook Would Behave

The Government Didn’t Foresee How Facebook Would Behave

Today’s antitrust regulators should rein in the tech giants.
The U.S. government almost never jumps at its first chance to confront an emerging monopoly. But regulators have a long history of getting it right the second time. Standard Oil controlled America’s petroleum market for years before the Justice Department sued the company under the Sherman Antitrust Act; the federal government helped enshrine AT&T’s telephone monopoly for decades before deciding to break up “Ma Bell.” But now that federal and state enforcers are turning their attention to the power of large tech companies, lawyers for Facebook are insisting that the government already missed its only opportunity.

In lawsuits filed late last year, the Federal Trade Commission and 48 state attorneys general zeroed in on Facebook’s acquisitions of Instagram in 2012 and WhatsApp in 2014. Back then, the FTC issued what are known as “no action” letters.

The company’s main defense to the new lawsuits is that agency enforcers declined to block the transactions when they had the chance. The new lawsuits, Facebook’s general counsel has insisted, are “revisionist history”—misbegotten attempts at a “do-over.”

Since the FTC litigation was filed, Joe Biden has been sworn in as president. While his administration may be less prone to criticizing Silicon Valley via Twitter than former President Donald Trump was, Democrats may be more receptive to calls for an aggressive new approach to antitrust enforcement.

But if Facebook’s position is any indication, tech companies will try to use lax antitrust enforcement in the past as grounds to demand similar treatment going forward. That argument shouldn’t fly. Regulatory agencies need the flexibility to respond to changing conditions, new facts, and new ideas about how markets work—or don’t work.

As a legal matter, Facebook’s argument here is flat-out wrong. The FTC’s failure to block the acquisitions of Instagram and WhatsApp did not give Facebook carte blanche for all subsequent misbehavior. Indeed, the FTC’s letters explicitly reserved “the right to take such further action as the public interest may require.” And the FTC has intervened in other cases after initially withholding judgment. Since 2000, regulators have challenged at least four other mergers that had previously been reviewed.

The problems that some mergers can create are not always obvious in advance. When the Facebook founder Mark Zuckerberg proposed buying Instagram, his company’s displacement of the former social-networking leader, Myspace, was still being touted as proof that disrupting digital markets was easy. As FTC officials tried to peer into the future back in 2012, they might have reasonably asked whether Facebook or Instagram would even exist a few years down the road.

Today, no crystal ball is needed. Facebook is still the world’s biggest social network, more than a decade after it dethroned Myspace. And the relevant legal question—did Facebook acquire its rivals in order to stifle innovation and competition?—can be answered by looking at what the company has actually done. After buying Instagram, the FTC alleges, Zuckerberg’s firm shut down its own efforts to build a better photo-sharing app and tamped down promotions of Instagram out of fear of cannibalizing the flagship Facebook product. Those crucial facts simply weren’t available to regulators before the deal went through.

Some of Facebook’s defenders argue that any corrective action under these circumstances would be a mistake—“hindsight bias,” as two of them argued over the summer. But prosecuting an antitrust case in light of new facts isn’t a “do-over.” It’s simple law enforcement.

What’s more, regulators’ understanding of digital markets has deepened considerably since 2012. Back then, prominent legal experts—including Robert Bork, whose legal scholarship helped justify half a century of market consolidation—were arguing that antitrust laws simply don’t apply to “free” products such as online search engines and social-networking sites.

But in the past nine years, many more legal scholars and regular internet users alike have come to realize that Facebook and Google don’t actually give away their products for free. Users pay for access with some of their most valuable resources—their time, attention, and personal information. Concentrating power in the hands of a few massive companies carries huge risks, even in markets without explicit prices.

With 2.7 billion active users on Facebook’s flagship product alone, no monopoly in history has spread so far and affected so many lives. The sheer size and scope of Facebook and other tech behemoths have triggered a broader reconsideration of Bork’s laissez-faire approach to antitrust. A blockbuster report issued last year by the House Judiciary Subcommittee on Antitrust explicitly called out the Supreme Court for its narrow interpretation of antitrust statutes.

Two of the five spots on the FTC are likely to be vacant soon, and Biden has not yet filled the top spot in the Justice Department’s antitrust division. The current moment calls for progressive enforcers who have demonstrated that they understand the challenges Big Tech poses to the economy and who are willing to confront them directly. Biden’s choices now will shape—and could transform—the digital economy for years to come.

The Facebook litigation, too, will be a harbinger. If the company is forced to spin off Instagram and WhatsApp, regulators will be emboldened to give potentially harmful acquisitions far more scrutiny. Either way, the case is a much-needed reminder that the current digital landscape was not the inexorable result of market forces and advancing technologies.

It was the result of deliberate business decisions that regulators might have stopped at the time—and can review in the future. If we are bold enough to act, we as Americans can shape digital markets that work for all of us, instead of continuing to concentrate power in the hands of a few massive companies.
Newsletter

Related Articles

0:00
0:00
Close
Nearly Half of Job Losses Under Labour Government Affect UK Youth
UK Chancellor Reeves Eyes High-Value Home Levy in Budget to Raise Tens of Billions
UK Urges Poland to Choose Swedish Submarines in Multi-Billion € Defence Bid
US Border Czar Tom Homan Declares UK No Longer a ‘Friend’ Amid Intelligence Rift
UK Announces Reversal of Income Tax Hike Plans Ahead of Budget
Starmer Faces Mounting Turmoil as Leaked Briefings Ignite Leadership Plot Rumours
UK Commentator Sami Hamdi Returns Home After US Visa Revocation and Detention
UK Eyes Denmark-Style Asylum Rules in Major Migration Shift
UK Signals Intelligence Freeze Amid US Maritime Drug-Strike Campaign
TikTok Awards UK & Ireland 2025 Celebrates Top Creators Including Max Klymenko as Creator of the Year
UK Growth Nearly Stalls at 0.1% in Q3 as Cyberattack Halts Car Production
Apple Denied Permission to Appeal UK App Store Ruling, Faces Over £1bn Liability
UK Chooses Wylfa for First Small Modular Reactors, Drawing Sharp U.S. Objection
Starmer Faces Growing Labour Backlash as Briefing Sparks Authority Crisis
Reform UK Withdraws from BBC Documentary Amid Legal Storm Over Trump Speech Edit
UK Prime Minister Attempts to Reassert Authority Amid Internal Labour Leadership Drama
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
Prince Harry’s Remembrance Day Essay Expresses Strong Regret at Leaving Britain
UK Unemployment Hits 5% as Wage Growth Slows, Paving Way for Bank of England Rate Cut
Starmer Warns of Resurgent Racism in UK Politics as He Vows Child-Poverty Reforms
UK Grocery Inflation Slows to 4.7% as Supermarkets Launch Pre-Christmas Promotions
UK Government Backs the BBC amid Editing Scandal and Trump Threat of Legal Action
UK Assessment Mis-Estimated Fallout From Palestine Action Ban, Records Reveal
UK Halts Intelligence Sharing with US Amid Lethal Boat-Strike Concerns
King Charles III Leads Britain in Remembrance Sunday Tribute to War Dead
UK Retail Sales Growth Slows as Households Hold Back Ahead of Black Friday and Budget
Shell Pulls Out of Two UK Floating Wind Projects Amid Renewables Retreat
Viagogo Hit With £15 Million Tax Bill After HMRC Transfer-Pricing Inquiry
Jaguar Land Rover Cyberattack Pinches UK GDP, Bank of England Says
UK and Germany Sound Alarm on Russian-Satellite Threat to Critical Infrastructure
Former Prince Andrew Faces U.S. Congressional Request for Testimony Amid Brexit of Royal Title
BBC Director-General Tim Davie and News CEO Deborah Turness Resign Amid Editing Controversy
Tom Cruise Arrives by Helicopter at UK Scientology Fundraiser Amid Local Protests
Prince Andrew and Sarah Ferguson Face Fresh UK Probes Amid Royal Fallout
Mothers Link Teen Suicides to AI Chatbots in Growing Legal Battle
UK Government to Mirror Denmark’s Tough Immigration Framework in Major Policy Shift
UK Government Turns to Denmark-Style Immigration Reforms to Overhaul Border Rules
UK Chancellor Warned Against Cutting Insulation Funding as Budget Looms
UK Tenant Complaints Hit Record Levels as Rental Sector Faces Mounting Pressure
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
UK Signals Major Shift as Nuclear Arms Race Looms
BBC’s « Celebrity Traitors UK » Finale Breaks Records with 11.1 Million Viewers
UK Spy Case Collapse Highlights Implications for UK-Taiwan Strategic Alignment
On the Road to the Oscars? Meghan Markle to Star in a New Film
A Vote Worth a Trillion Dollars: Elon Musk’s Defining Day
AI Researchers Claim Human-Level General Intelligence Is Already Here
President Donald Trump Challenges Nigeria with Military Options Over Alleged Christian Killings
Nancy Pelosi Finally Announces She Will Not Seek Re-Election, Signalling End of Long Congressional Career
UK Pre-Budget Blues and Rate-Cut Concerns Pile Pressure on Pound
×