1. U.S. antitrust case against Meta may force service divestitures. 2. Regulators accuse Meta of monopolistic practices during acquisitions. 3. Meta argues it’s not a monopoly, citing competition from TikTok and YouTube. 4. Initial share drop of 2.22% as case hearings commenced. 5. Public opinion leans towards believing Meta has monopoly power.
The potential ruling against Meta could significantly harm its business model and market position, restricting its operational capacities. A similar past case saw the breakup of ATT, drastically affecting stock performance.
The lawsuit directly threatens Meta's core acquisitions, which are vital to its dominance in social media, influencing investor confidence and market perception.
The outcomes of antitrust cases can lead to extensive legal battles and strategic adjustments that affect Meta's growth trajectory over the long run. Regulatory shifts often result in permanent changes in market dynamics.