Zuckerberg Defends Instagram Acquisition in Antitrust Trial

Mark Zuckerberg, the CEO of Meta, faced questioning from a Federal Trade Commission attorney on Tuesday regarding emails he wrote about the acquisition of Instagram. This occurred during the second day of a significant antitrust trial, where Meta is accused of illegally monopolizing the social media market.

The trial centers on Meta's purchases of Instagram and WhatsApp, acquisitions that could potentially lead to the company being forced to divest these apps. The FTC's case, led by Daniel Matheson, argues that Zuckerberg acquired Instagram to eliminate a competitive threat, rather than to foster its growth.

During the questioning, Matheson highlighted Zuckerberg's description of Instagram as a "rapidly growing, threatening, network." However, Zuckerberg countered that while he acknowledged concerns about Instagram's growth, he also expressed excitement about acquiring the company to improve its product. He disputed the claim that the primary motivation for the acquisition was to neutralize a threat.

The questioning frequently referenced emails written by Zuckerberg and his associates before the Instagram acquisition. While acknowledging these documents, Zuckerberg often downplayed their significance, stating they were written during the early stages of considering the acquisition and didn't fully represent his interest in the company.

The CEO was also questioned about the decision to acquire Instagram and WhatsApp instead of developing new apps. Zuckerberg explained that building a new app is challenging, and many attempts by the company had not gained traction. He also contested the government's assertion that acquiring Instagram was detrimental to competition and consumers.

The trial represents a major test of the FTC's ability to challenge Big Tech. The lawsuit, filed in 2020, alleges that Meta acquired Instagram and WhatsApp to stifle competition and establish an illegal monopoly in the social media market. Facebook acquired Instagram, a photo-sharing app, in 2012 for $1 billion.

The FTC's definition of Meta's competitive market is narrow, excluding companies like TikTok, YouTube, and Apple's messaging service. Meta, however, argues that the lawsuit is unrealistic, stating that Instagram, Facebook, and WhatsApp compete with various platforms, including TikTok, YouTube, and others. The case is being presided over by U.S. District Judge James Boasberg, who denied Meta's request for a summary judgment, leading to the trial.