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Threat of Meta breakup looms as FTCโs monopoly trial ends
After weeks of arguments in the Federal Trade Commission's monopoly trial, Meta is done defending its decade-plus-old acquisitions of Instagram and WhatsAppโat least for now.
The seven-week trial ended Tuesday, with the FTC urging Judge James Boasberg to rule that a breakup is necessary to end Meta's alleged monopoly in the "personal social networking services" market, where Meta currently faces sparse competition among other apps connecting friends and family. As alleged by the FTC, Meta's internal emails laid bare that Meta's motive in acquiring both Instagram and WhatsApp was to pay whatever it took to snuff out dominant rivals threatening to lure users away from FacebookโMark Zuckerberg's jewel.
Talking to Bloomberg, Meta has maintained that the FTC's case is weak, seeking to undo deals that the FTC approved long ago while ignoring the competition Meta faces from rivals in the broader social media market, like TikTok. But Meta's attempt to shut down the case mid-trial was rebuffed by Boasberg, who has signaled he will take months to weigh his decision.
ยฉ Aurich Lawson | Getty Images
Meta argues enshittification isnโt real in bid to toss FTC monopoly case
Meta thinks there's no reason to carry on with its defense after the Federal Trade Commission closed its monopoly case, and the company has moved to end the trial early by claiming that the FTC utterly failed to prove its case.
"The FTC has no proof that Meta has monopoly power," Meta's motion for judgment filed Thursday said, "and therefore the court should rule in favor of Meta."
According to Meta, the FTC failed to show evidence that "the overall quality of Metaโs apps has declined" or that the company shows too many ads to users. Meta says that's "fatal" to the FTC's case that the company wielded monopoly power to pursue more ad revenue while degrading user experience over time (an Internet trend known as "enshittification"). And on top of allegedly showing no evidence of "ad load, privacy, integrity, and features" degradation on Meta apps, Meta argued there's no precedent for an antitrust claim rooted in this alleged harm.
ยฉ Bloomberg / Contributor | Bloomberg
Five things we learned from WhatsApp vs. NSO Group spyware lawsuit
WhatsApp provides no cryptographic management for group messages
The world has been abuzz for weeks now about the inclusion of a journalist in a group message of senior White House officials discussing plans for a military strike. In that case, the breach was the result of then-National Security Advisor Mike Waltz accidentally adding The Atlantic Editor-in-Chief Jeffrey Goldberg to the group chat and no one else in the chat noticing. But what if someone controlling or hacking a messenger platform could do the same thing?
When it comes to WhatsAppโthe Meta-owned messenger thatโs frequently touted for offering end-to-end encryptionโit turns out you can.
A clean bill of health except for...
A team of researchers confirmed that behavior in a recently released formal analysis of WhatsApp group messaging. They reverse-engineered the app, described the formal cryptographic protocols, and provided theorems establishing the security guarantees that WhatsApp provides. Overall, they gave the messenger a clean bill of health, finding that it works securely and as described by WhatsApp.
ยฉ Stan Honda / Getty Images
Jury orders NSO to pay $167 million for hacking WhatsApp users
A jury has awarded WhatsApp $167 million in punitive damages in a case the company brought against Israel-based NSO Group for exploiting a software vulnerability that hijacked the phones of thousands of users.
The verdict, reached Tuesday, comes as a major victory not just for Meta-owned WhatsApp but also for privacy- and security-rights advocates who have long criticized the practices of NSO and other exploit sellers. The jury also awarded WhatsApp $444 million in compensatory damages.
Clickless exploit
WhatsApp sued NSO in 2019 for an attack that targeted roughly 1,400 mobile phones belonging to attorneys, journalists, human-rights activists, political dissidents, diplomats, and senior foreign government officials. NSO, which works on behalf of governments and law enforcement authorities in various countries, exploited a critical WhatsApp vulnerability that allowed it to install NSOโs proprietary spyware Pegasus on iOS and Android devices. The clickless exploit worked by placing a call to a target's app. A target did not have to answer the call to be infected.
ยฉ Getty Images | the-lightwriter