Facebook Added ‘Value’ to Instagram, Zuckerberg Tells Antitrust Trial
AFP/APP
Washington: Meta CEO Mark Zuckerberg defended the company’s acquisition of Instagram and WhatsApp in a major US antitrust trial, claiming that the social media giant added significant value to the platforms after purchasing them.
Zuckerberg’s second day of testimony came amid accusations from the Federal Trade Commission (FTC) that Facebook used acquisitions to neutralize potential competitors. FTC attorney Daniel Matheson presented 2012 emails from Facebook’s then-CFO that listed “neutralizing a competitor” as a reason for acquiring startups like Instagram.
Zuckerberg refrained from addressing competition concerns directly, instead emphasizing the success of the acquisitions:
“Instagram integration ended up going very well; we were able to add way more value to Instagram than we would have expected.”
He added that successful integration gave Facebook the confidence to grow other social apps more effectively than they could have alone. He also remarked that if Snapchat had accepted Facebook’s 2013 buyout offer, it might now have billions of users rather than the 450 million it currently has.
At the heart of the case is Facebook’s $1 billion acquisition of Instagram in 2012, which now boasts over two billion users. The FTC presented an email from Zuckerberg calling Instagram’s rise “really scary,” suggesting it was a threat worth acquiring.
Similarly, the FTC claims Facebook’s $19 billion WhatsApp acquisition in 2014 was driven by fear it could evolve into a competing social platform.
Meta’s legal team argues that its investments transformed Instagram and WhatsApp into global successes and that the platforms remain free and face strong competition. Lead defense attorney Mark Hansen stated:
“Acquisitions to improve and grow an acquired firm are not unlawful in the United States.”
A pivotal element in the trial is how the FTC defines Meta’s market dominance. The FTC limits the scope to apps that connect people socially, excluding YouTube and TikTok. Meta contests this, with Zuckerberg citing those platforms as Facebook and Instagram’s main rivals, particularly in video content sharing.
Zuckerberg acknowledged Meta still has ground to cover in video, saying:
“Video is the primary way people share content.”
The case, originally filed in 2020 during the Trump administration, could force Meta to divest Instagram and WhatsApp. Despite Zuckerberg’s lobbying efforts, including contributions to Trump’s inauguration and a move to Washington D.C., the antitrust challenge has pressed forward.
