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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.

Meta Secures Emergency Ruling to Halt Promotion of Former Employee’s Tell-All Book

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Meta Platforms has won an emergency arbitration ruling to temporarily halt the promotion of a tell-all book titled “Careless People” written by its former employee, Sarah Wynn-Williams. The ruling, issued by the American Arbitration Association, states that Wynn-Williams must cease promoting the book, which was released by Macmillan, and must take steps to stop its further publication, though the publisher is not required to take any action.

The book, which offers an unflattering portrayal of Meta and its leadership, including CEO Mark Zuckerberg, former COO Sheryl Sandberg, and Chief Global Affairs Officer Joel Kaplan, was described by the New York Times book review as “an ugly, detailed portrait” of the tech giant. Wynn-Williams, who was Meta’s former director of global public policy, claims in the book that the company’s executives were involved in unethical practices.

The ruling, issued after a hearing where Wynn-Williams did not appear, found that Meta would suffer “immediate and irreparable loss” without the emergency relief. Meta spokesperson Andy Stone commented on Threads, stating that the ruling confirmed that the book, which he characterized as “false and defamatory,” should not have been published.

Macmillan, the publisher of the book, argued that it was not bound by the arbitration agreement, which was part of Wynn-Williams’ severance agreement with Meta. Both Wynn-Williams and Macmillan have not yet responded to Reuters’ requests for comment on the arbitration decision.

Microsoft Shares Drop as Cloud Outlook Disappoints, Meta Gains on AI Optimism

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Microsoft saw its shares tumble 6% on Thursday after its artificial intelligence (AI) investments failed to significantly boost cloud revenue. Meanwhile, Meta’s stock rose 4% as CEO Mark Zuckerberg reassured investors of strong growth potential, calling 2024 a “really big year.”

Both tech giants defended their heavy AI spending following concerns sparked by Chinese AI startup DeepSeek’s recent advancements in low-cost AI models. However, while Meta continues to show strong ad revenue growth—justifying its AI investments, according to Evercore analyst Mark Mahaney—Microsoft’s Azure cloud platform has struggled.

Microsoft missed market estimates for Azure’s quarterly revenue growth and provided a third-quarter forecast below expectations. The company had previously promised a second-half rebound, but analysts now express skepticism.

“The second-half re-acceleration story for Azure is not playing out,” said Barclays analyst Raimo Lenschow, adding that Microsoft prioritized AI workloads over core Azure functions, delaying the expected growth recovery.

For Meta, a stronger-than-expected 21% revenue increase eased investor concerns about Zuckerberg’s aggressive AI spending plans, which could reach $65 billion this year. Analysts remain bullish, with Barton Crockett of Rosenblatt stating that “Meta might have more benefits to show from AI than anyone.”

At least 15 brokerages raised their price targets on Meta, which saw a 65% stock gain in 2023, the largest among Big Tech firms. The stock’s rally was set to add over $80 billion to its market value.

Conversely, Microsoft was on track to lose about $182 billion in market capitalization. J.P. Morgan analyst Mark Murphy noted that Microsoft “did not recommit to its Azure second-half outlook the same way it did 90 days ago,” weakening confidence in the company’s cloud growth trajectory.