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Mark Zuckerberg Defends Meta Against US Antitrust Allegations During Trial Testimony

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Meta CEO Mark Zuckerberg testified on Monday in a closely watched antitrust trial in Washington, defending the company against claims that it acquired Instagram and WhatsApp to stifle competition. US regulators argue that Meta’s multibillion-dollar deals were strategically aimed at neutralizing emerging threats to Facebook’s dominance in the social media landscape.

The Federal Trade Commission (FTC) is seeking a major structural remedy that could force Meta to divest Instagram and WhatsApp. This case, viewed as a major test of the US government’s willingness to challenge Big Tech, comes at a critical time when Meta’s revenue heavily depends on platforms like Instagram, which reportedly contributes to nearly half of the company’s US advertising income.

During his testimony, Zuckerberg, dressed in a dark suit and light blue tie, maintained a calm demeanor as he refuted claims that the acquisitions were motivated solely by a desire to crush competition. He insisted that connecting friends and family was only one part of Meta’s broader vision for its apps. Zuckerberg highlighted that Facebook’s strategy also emphasized helping users discover public content, beyond just personal sharing.

Zuckerberg also addressed a pivotal 2018 decision when Facebook shifted its focus back to content shared by friends, a move that failed to keep pace with how users were increasingly sharing through private messages rather than public posts. Meanwhile, the FTC presented internal communications suggesting Zuckerberg had viewed acquiring Instagram and WhatsApp as strategic moves to preempt future rivals, particularly with the rising competition from newer platforms like TikTok.

Cleo AI Settles FTC Deception Charges for $17 Million

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Cleo AI has agreed to pay $17 million to settle U.S. Federal Trade Commission (FTC) charges that it misled consumers about cash advance amounts and processing times, the agency announced Thursday.

FTC Allegations

  • Cleo falsely advertised cash advances of $250 to $500, but most users received as little as $20.

  • The company promised “instant” or “same-day” cash transfers but often delayed payments until the next day—while charging extra fees for expedited service.

  • Cleo made subscription cancellations difficult, continuing to charge $5.99 or $14.99 monthly fees even after repeated cancellation requests.

Settlement Terms

  • Cleo must improve transparency, obtain informed consent before charging for services, and make subscription cancellations easier.

  • The $17 million settlement will be used to refund affected consumers.

Company Response

While denying any wrongdoing, Cleo’s general counsel, Colin Jones, said the FTC’s claims were inaccurate and reflected a misunderstanding of the company’s operations. He stated that settling was the best course of action to allow Cleo to focus on helping Americans improve their financial lives.

FTC Withdraws Request for Delay in Amazon Trial, No Longer Cites Resource Shortages

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The U.S. Federal Trade Commission (FTC) has reversed its earlier request to delay the upcoming September trial against Amazon. The agency’s statement, which was issued on Wednesday, clarified that it no longer faces the resource constraints it had initially cited, which had prompted the request for a delay.

In a letter addressed to U.S. District Judge John Chun in Seattle, FTC attorney Jonathan Cohen acknowledged a previous misstatement regarding the lack of resources. Cohen assured the court that the FTC is fully prepared to litigate the case and will meet all deadlines and schedules set by the court.

FTC Chairman Andrew Ferguson emphasized the agency’s commitment to the consumer protection case, asserting, “The Trump-Vance FTC will never back down from taking on Big Tech.”

Earlier in the day, Cohen had described a “dire resource situation,” attributing it to cost-cutting measures introduced under President Donald Trump. The attorney had outlined how staff shortages and an employee resignation wave were negatively impacting the case. Cohen also noted a hiring freeze and reduced travel budgets, citing wider government budget cuts enforced by Trump advisor Elon Musk. However, this claim was later retracted, with Cohen clarifying that the FTC had sufficient resources for the trial.

The FTC’s case against Amazon, which was initiated in 2023, involves allegations of the company using “dark patterns” in its user interface to deceive consumers into subscribing to automatically renewing Prime subscriptions. Amazon has denied the accusations, and the case involves claims potentially worth at least $1 billion. The lawsuit also names three of Amazon’s senior executives.

Amazon’s legal counsel, John Hueston, opposed the request for a delay, noting that staff changes are common in litigation, regardless of external factors such as the DOGE (Department of Government Efficiency) initiative.