A Stanford study reveals that a potential divestiture of Instagram from Meta would increase competition among advertisers but ultimately harm users by exposing them to more ads. The research suggests that while ad prices may decrease, the quality of user experience could diminish as Instagram would need to target users more aggressively to compete with Facebook. The findings pose challenges for the FTC's case against Meta, which argues that the company is a monopolist.

Meta has concluded its defense in the FTC's monopoly trial regarding its acquisitions of Instagram and WhatsApp, with the FTC pushing for a breakup due to alleged anti-competitive practices. Despite Meta's confidence in a favorable outcome, experts point out the challenges of reversing mergers, and a ruling from Judge Boasberg is expected later this year.