NIX Solutions: Meta Platforms Requests Dismissal of FTC Antitrust Lawsuit

This week, Meta Platforms has formally requested a federal court to dismiss the US Federal Trade Commission’s (FTC) antitrust lawsuit. The company’s submission to the court contains intricate details regarding Instagram’s advertising revenues in recent years, shedding light on its competitive standing vis-à-vis YouTube.

NIX Solutions

Instagram vs. YouTube: Advertising Revenue Analysis

Instagram’s advertising revenue for 2021 amounted to $32.4 billion, outstripping YouTube’s $28.8 billion. This discrepancy is attributed to YouTube’s policy of allocating 55% of advertising revenue to content creators, whereas Instagram compensates creators comparatively less. This trend persists over previous years, with Meta estimating Instagram’s revenue at $22 billion and $17.9 billion for 2020 and 2019, respectively, while YouTube’s revenue for the same periods stood at $19.7 billion and $15.1 billion, notes NIX Solutions.

Meta’s Growing Share of Instagram’s Revenue

Bloomberg reports Meta’s ownership share of Instagram’s revenue surged from 26% in 2020 to nearly 30% in the initial six months of 2022. The documents submitted by Meta offer deeper insights into the company’s financials than its regular financial statements, underscoring the significance of Instagram within Meta’s business ecosystem.

As developments unfold in this legal battle, we’ll keep you updated on Meta’s stance and the outcome of the court’s deliberations.