Zuckerberg Considered Spinning Off Instagram Amid Antitrust Concerns in 2018
In a 2018 internal email, Meta CEO Mark Zuckerberg contemplated the possibility of spinning off Instagram as a separate entity, anticipating potential regulatory pressures.
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| Photo from AFP |
This revelation emerged during the ongoing antitrust trial, where the Federal Trade Commission (FTC) accuses Meta of monopolistic practices through its acquisitions of Instagram and WhatsApp.
Zuckerberg's email acknowledged a "non-trivial chance" that Meta could be compelled to divest from Instagram and WhatsApp within five to ten years.
He noted that while companies typically resist breakups, historical precedents suggest that such separations can lead to improved performance. He also expressed concerns about the increasing political momentum toward regulating large tech firms, especially with the potential of a future Democratic presidency.
During his testimony, Zuckerberg defended the acquisitions, stating they were intended to enhance product development rather than neutralize competition.
He admitted Instagram posed a competitive threat but argued the acquisition aimed at integrating Instagram's strengths into Meta’s ecosystem.
The FTC alleges that Meta pursued a "buy or bury" strategy to eliminate competition and dominate social media connections between friends and family.
Zuckerberg, in his defense, claimed the acquisitions were strategic business decisions, citing Instagram's superior camera as a motivation. He also highlighted Meta's competition with platforms like YouTube and TikTok.
The trial, overseen by U.S. District Judge James Boasberg, is a key test of Big Tech regulatory enforcement under the FTC. The outcome could potentially lead to forced divestitures of Instagram and WhatsApp.
