Then it’s a bad definition. Who organises family gatherings on YouTube?
The challenge here is there isn't a single market definition that would fit. It's up to the plaintiff (FTC) to allege a coherent definition, and it sounds like in this case they just neglected to do so.
Still if in your opinion YouTube was a “Personal Social Networking Service” then why do you think Google have made G+?
Competing on features != competing in a different market. Feature sets and markets are two very different things.
What definition would you use to define Facebook's market?
Spray paint manufacturers aren’t in pen market even if you can “recorded text and images in a durable fashion with them.” Lighting a couch on fire sure produces a lot of lights but couch manufactures are not part of the home lighting market.
EDIT: But let’s ignore that. Sure, YouTube has roughly the share of social networking market as the number of people posting vacation photos on it. That might just add up to 0.0001% market share.
I can’t think of any definition that would only apply to Facebook that isn’t so narrow as to be unprecedented as a definition of an entire market.
Bell was “telephone service”. Standard oil was “oil”. What’s a comparable definition for the market that Facebook is in?
Arguably Instagram in April, 2012 was a reasonable pens vs pencil division where the courts could have included or excluded them quite reasonably. Though allowing Facebook to buy them suggest a vary narrow definition at the time.
But if I understand correctly, determining whether two companies are competitors is more about their markets, rather than their feature sets.
From the ruling text:
> Although the precise definition of a “Personal Social Networking Service” is disputed (as that is the market in which Facebook has its alleged monopoly), it can be summarized here as one that enables users to virtually connect with others in their network and to digitally share their views and experiences by posting about them in a shared, virtual social space.
YouTube would fit that definition.