Meta has released a significant update for Instagram that enhances its functionality with 3D elements and improved navigation for users of Quest VR headsets. This update aims to create a more immersive experience for users interacting with Instagram in virtual reality.

Instagram is reportedly developing a new video editing tool that resembles CapCut, a popular app by ByteDance, in an effort to compete with TikTok's features. This move aligns with Meta's broader strategy to enhance its offerings and maintain user engagement on its platforms.

Meta CEO Mark Zuckerberg considered spinning off Instagram in 2018 due to mounting antitrust concerns, as revealed during his testimony in a trial against the Federal Trade Commission. In an email, he noted that separating Instagram and possibly WhatsApp could be necessary in light of potential regulatory actions. The FTC is seeking to dissolve these acquisitions, arguing that Meta monopolizes the social networking market.

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.

Meta is contesting claims by the FTC that it has monopolized the social media market by acquiring competitors like Instagram and WhatsApp. During the trial, Meta argues that competition remains strong, citing user behavior during outages of rival platforms like TikTok as evidence.

Meta is facing a significant antitrust trial initiated by the FTC, which alleges the company has monopolized the personal social networking market and seeks to force the divestiture of Instagram and WhatsApp. The trial will determine if Meta's acquisitions harmed competition, amid a backdrop of changing political leadership and ongoing debates about market definitions in tech.