In a high-stakes antitrust trial, Meta CEO Mark Zuckerberg has found himself at the forefront of accusations that he stifled competition by acquiring Instagram and WhatsApp. The trial is unfolding in Washington, D.C., as the Federal Trade Commission (FTC) builds a case against the tech giant.
Background of the Case
Filed in December 2020, the case challenges Meta’s practices, asserting that Zuckerberg and his company opted to purchase potential competitors rather than fostering competition. According to FTC attorney Daniel Matheson, Facebook’s strategy involved acquiring whatever it viewed as a threat.
- Instagram was purchased in 2012 for a billion dollars.
- WhatsApp followed in 2014 for US$19 billion.
Emails between executives reveal Zuckerberg’s concern about Instagram’s potential to disrupt Facebook. An internal message described Instagram as “really scary” due to its rapid ascent. Yet, Zuckerberg maintains these acquisitions were necessary for growth and improving user experience.
Zuckerberg on the Stand
Testifying over several days, Zuckerberg sought to downplay the implications of the emails presented by the FTC, suggesting they were just preliminary discussions. He highlighted the successful integration of Instagram, expressing confidence that Facebook can identify and nurture other social apps.
While defending Meta’s approach, Zuckerberg contrasted the company’s ethos to that of Snapchat, claiming that had the app accepted Facebook’s buyout offer in 2013, it could have achieved significantly higher user numbers.
Market Dynamics and Competition
Central to the trial is how Meta’s market is defined. The government argues Facebook and Instagram dominate social networking, excluding competing platforms like TikTok and YouTube. In response, Meta claims these platforms are valid competitors, and their inclusion would illustrate a vibrant marketplace.
“The evidence at trial will show what every 17-year-old in the world knows: Instagram, Facebook, and WhatsApp compete with platforms like TikTok and YouTube,” said a Meta spokesperson.
Conclusion of Initial Testimony
As the trial progresses, it remains to be seen whether Meta will ultimately be compelled to divest itself of these popular platforms. With former executives and industry rivals slated to testify, the outcome could reshape the landscape of social media and antitrust law.