Meta CEO Zuckerberg contemplated spinning up Instagram because of antitrust concerns according to trial documents

In 2018, citing growing antitrust concerns, Zuckerberg of Meta contemplated splitting off Instagram, according to trial records.

Internal documents disclosed during a high-profile antitrust trial in Washington, D.C., on Tuesday, show that in 2018, Meta CEO Mark Zuckerberg contemplated spinning off Instagram as a separate business in anticipation of potential antitrust scrutiny.

The document, which was presented on Zuckerberg’s second day of evidence, showed the tech executive’s initial worries about the mounting calls to dismantle large digital companies. Zuckerberg stated in a message at the time, “I wonder if we should consider the extreme step of spinning Instagram out as a separate company.” as calls to dismantle the large digital firms intensify. We have a serious chance of having to spin out WhatsApp and Instagram within the next five to ten years.

The US FTC is bringing the case to stop Meta’s purchases of Instagram and WhatsApp, which the agency claims were a part of a larger “buy or bury” strategy to stifle competition and establish monopoly control in the social media industry.

At the time of the acquisition, Zuckerberg acknowledged in his testimony that Instagram had a better camera app than what Facebook was creating in-house. “We were analyzing whether to buy or build,” he explained. “I felt it was better to buy them because Instagram was better at that.” The FTC may use this revelation to support its allegations that Meta targeted Instagram to neutralize a growing threat in addition to seeking financing.

Using smaller networks like MeWe and Snapchat as examples, the FTC contends that Meta has illegally maintained a monopoly on platforms that allow users to interact with friends and family. Furthermore, it challenges Meta’s argument that TikTok, YouTube, and Reddit are significant rivals because they serve distinct user demographics and content-sharing preferences.

The FTC misdefined the market and failed to consider the fierce competition from newer companies, namely TikTok, YouTube, and Apple’s iMessage, according to Meta’s legal team.

Additionally, Zuckerberg denied that Meta’s dominance has allowed it to bombard users with advertisements, lowering the quality of apps. The user experience is not always negatively impacted by increased advertising, he maintained. The algorithm now displays more ad material to people who are more inclined to interact with it, he added, adding that “ads on our apps have improved.”

He even admitted under interrogation that Meta had occasionally entertained the notion of introducing an ad-only feed. “I don’t think we have done it, but I think we have talked about it at various points,” he stated.

The difficulties of internal innovation were emphasized by Zuckerberg in support of Meta’s acquisition plan. Building a new app is difficult, and most of the time when we have attempted to do so, it hasn’t gained any popularity, he stated. Throughout the company’s existence, we have likely attempted to create dozens of apps, most of which fail.

The FTC’s lawsuit, which was first brought during the first term of President Donald Trump, is generally seen as a crucial examination of the US government’s determination to control Big Tech. The trial is still shedding light on how Meta became a digital empire and if it did so at the expense of fair competition, as Zuckerberg’s testimony indicates internal discussions.