FTC Rejected Meta’s $450M Settlement Offer Weeks Before Antitrust Trial Began

Meta CEO Mark Zuckerberg reportedly offered a modest $450 million to settle a high-stakes antitrust case brought by the Federal Trade Commission (FTC), a proposal that was swiftly rejected by regulators, according to The New York Post.

The proposed settlement, revealed in late March during a private call between Zuckerberg and FTC Chair Andrew Ferguson, was significantly lower than the $30 billion the agency is seeking, per The New York Post. Citing sources familiar with the matter, The Wall Street Journal reported that Zuckerberg appeared confident during the conversation and expressed optimism that former President Donald Trump would support him in the regulatory battle.

However, Ferguson dismissed the offer, stating that the FTC would not entertain anything below $18 billion. He also reportedly insisted on a consent decree that would prevent Meta from engaging in further anticompetitive practices.

Related: Mark Zuckerberg Defends Meta in FTC Antitrust Trial Over Instagram and WhatsApp

In a bid to reach an agreement, Zuckerberg later raised the settlement offer to nearly $1 billion, yet that figure still fell far short of the FTC’s demands. With negotiations collapsing, the case proceeded to trial as scheduled this week.

As the trial got underway, Zuckerberg took the stand as the first witness and has endured rigorous questioning from FTC attorneys for several consecutive days. The agency is pushing for a court order that would force Meta to divest from its acquisitions of Instagram and WhatsApp, which it argues stifle competition in the social media and messaging markets.

According to The New York Post, the FTC previously stated in court documents that Zuckerberg would likely testify longer than any other individual in the trial—a sign of how central his role is to the government’s case.

Source: The New York Post