A federal judge ruled Tuesday that Meta Platforms does not hold monopoly power in personal social networking.
The decision hands a major victory to the company and defeats the Federal Trade Commission's five-year antitrust campaign to force Meta to divest Instagram and WhatsApp.
United States District Judge James Boasberg concluded that the social media landscape has transformed dramatically since the lawsuit was filed in 2020.
The agency failed to demonstrate that Meta currently possesses monopoly power in the market it defined.
Boasberg highlighted the rise of TikTok as Meta's fiercest rival, a platform unmentioned in earlier court rulings on the case in 2021 and 2022.
Evidence showed Meta apps gained users during TikTok's temporary U.S. shutdown and after its ban in India, indicating consumers view the services as interchangeable.
The judge invoked the Greek philosopher Heraclitus, noting that social media changes so rapidly the court has never examined the same case twice.
He ruled that the FTC's narrow market definition, which excluded TikTok and YouTube, no longer reflects reality.
The FTC had accused Meta of following a "buy rather than compete" strategy by acquiring Instagram for about $1 billion in 2012 and WhatsApp for $22 billion in 2014.
Trial testimony from CEO Mark Zuckerberg and Instagram chief Adam Mosseri emphasized distinct roles for each app and intense ongoing competition, particularly with TikTok for younger users.
Boasberg rejected claims that the acquisitions illegally maintained monopoly power.
A Meta spokesperson welcomed the ruling, stating the company faces fierce competition and plans continued investment in America.
The decision marks another setback for government efforts to rein in Big Tech dominance through breakup remedies.