Meta CEO Mark Zuckerberg once contemplated spinning off Instagram due to growing antitrust concerns, according to a 2018 email presented Tuesday during the ongoing federal antitrust trial against Meta.
In the email, revealed on the trial’s second day, Zuckerberg wrote that “spinning Instagram out” might become necessary as regulatory scrutiny of Big Tech intensified. He also speculated that Meta could be forced to divest Instagram and WhatsApp within five to ten years, stating that “there is a non-trivial chance” of such an outcome.
“While most companies resist breakups, the corporate history is that most companies actually perform better after they've been split up,” Zuckerberg noted in the message.
When asked in court what examples he was referring to, Zuckerberg admitted, “I’m not sure what I had in mind then.”
Zuckerberg, the first witness called by the Federal Trade Commission (FTC), has now testified for more than seven hours over two days. The FTC alleges Meta monopolized the social media market by acquiring Instagram in 2012 and WhatsApp in 2014 — actions it claims were designed to eliminate competition.
FTC attorney Daniel Matheson pressed Zuckerberg on the rationale behind the acquisitions, pointing to earlier emails where Zuckerberg labeled Instagram a “rapidly growing, threatening network.” He also highlighted a 2012 message in which Zuckerberg described Instagram and the now-defunct app Path as potentially “very disruptive” to Facebook.
Zuckerberg countered that those emails were written during early discussions and didn’t reflect the full strategic vision.
“We were building a mobile camera app. Instagram had a better product. I thought it made sense to acquire them and create something better together,” he testified.
Zuckerberg rejected the suggestion that Instagram was bought solely to neutralize a competitive threat, calling such an interpretation a “mischaracterization.”
Meta attorney Mark Hansen began cross-examination Tuesday afternoon, emphasizing the competitiveness of the social media space and noting that Meta’s services remain free.
“It’s very competitive,” Zuckerberg said, arguing that charging users would push them to alternatives since similar services are widely available.
The FTC’s lawsuit, filed in 2020 during the Trump administration, aims to force Meta to divest from Instagram and WhatsApp. The agency contends that the acquisitions helped Meta build an illegal monopoly. However, Meta disputes the FTC’s narrow market definition, which excludes platforms like TikTok, YouTube, and iMessage from consideration.
The case is being heard by U.S. District Judge James Boasberg, who last year denied Meta’s motion for summary judgment, sending the case to trial.
Testimony is set to continue Wednesday.
Source: AP/ UNB
Bd-pratidin English/ Jisan
