Trial records indicate that Meta’s Zuckerberg contemplated divesting Instagram in 2018, citing escalating antitrust concerns.
In 2018, Meta CEO Mark Zuckerberg contemplated the separation of Instagram into its own entity, expecting potential antitrust examination, as indicated by internal papers disclosed during a prominent antitrust trial in Washington, D.C., on Tuesday.
The memo presented during Zuckerberg’s second day of questioning disclosed the tech executive’s first apprehensions over increasing demands to dismantle large technology companies.
“I contemplate whether we ought to contemplate the drastic measure of divesting Instagram as an independent entity,” Zuckerberg said in a memorandum at the time.
“As demands to dismantle the large technology corporations intensify. There is a significant possibility that we may be compelled to divest Instagram and perhaps WhatsApp within the next 5 to 10 years.
The lawsuit initiated by the US Federal Trade Commission (FTC) seeks to reverse Meta’s purchases of Instagram and WhatsApp, which the agency contends were components of a larger “buy or bury” strategy designed to eradicate competition and establish monopolistic dominance in the social media sector.
Zuckerberg acknowledged during his evidence that Instagram has a superior camera application compared to the one Facebook was developing internally at the time of the acquisition.
“We conducted a build versus buy analysis,” he said. I believed that Instagram excelled in that regard, so I concluded it was preferable to purchase them.
This acknowledgment may strengthen the FTC’s assertions that Meta aimed to acquire Instagram not only as an investment, but to mitigate an escalating danger.
The FTC contends that Meta has sustained an unlawful monopoly over platforms facilitating connections among individuals, citing the scarcity of viable competitors such as Snapchat and lesser-known networks like MeWe.
It also challenges Meta’s assertion that sites such as TikTok, YouTube, and Reddit represent significant competition, arguing that they address distinct user behaviors and content-sharing methodologies.
Meta’s legal team contends that the FTC has inaccurately delineated the market and has disregarded significant competition from emerging entities, including TikTok, YouTube, and Apple’s iMessage.
Zuckerberg refuted the assertion that Meta’s preeminence has allowed it to diminish app quality by inundating users with advertisements. He said that more advertising does not inherently diminish the user experience.
“Advertisements on our applications have enhanced,” he said, noting that the system displays more ad material to users with a higher propensity for engagement.
During interrogation, he confessed that Meta had sometimes contemplated the notion of introducing an advertisement-only stream. “I believe we have addressed it at various intervals, yet I do not think we have executed it,” he said.
Zuckerberg emphasized the difficulties of internal innovation while supporting Meta’s acquisition approach.
“Developing a new application is challenging, and more often than not, our attempts to create a new app have not gained significant traction,” he said.
“Throughout the company’s history, we have likely attempted to develop numerous applications, most of which have not succeeded.”
The FTC’s lawsuit, first launched during President Donald Trump’s first term, is generally seen as a significant examination of the US government’s determination to control Big Tech.
Zuckerberg’s evidence has revealed internal discussions, as the trial continues to illuminate how Meta evolved into a digital empire and if this occurred at the cost of fair competition.
