Mark Zuckerberg defends Instagram against breakup fears

Mark Zuckerberg leaves federal court in Washington on April 15. Photo: New York Times .

On the second day of the antitrust trial, CEO Mark Zuckerberg firmly defended Meta's 2012 acquisition of Instagram, saying it was a normal business practice in the tech industry.

According to the New York Times , this is a landmark trial because if successful, the regulatory agency can ask the judge to split Meta, the company that owns the social network Facebook.

The day before, the US Federal Trade Commission (FTC) opened its first antitrust hearing under the Trump administration, alleging that the acquisitions have strengthened Meta’s power, deprived users of choice, and eliminated competition.

Focus on Instagram and WhatsApp

In court, Zuckerberg argued that tech companies often weigh the benefits and costs of developing new products versus acquiring startups that offer suitable products.

When Instagram was competing with Facebook's now-defunct Camera app, Zuckerberg said the company considered developing a new platform or acquiring it. Ultimately, the company decided to acquire Instagram.

Zuckerberg was a witness in the antitrust trial where the US government accused Meta of violating competition laws when it acquired WhatsApp and Instagram under a “buy or bury” strategy.

Meta CEO spent more than seven hours answering questions from the District Court attorney in Columbia, revolving around the acquisition to eliminate competitors.

The FTC’s lawsuit poses a serious threat to Meta. The agency has asked Judge James E. Boasberg, who presided over the trial, to find Meta guilty of illegally maintaining a monopoly in the social media market.

In 2012, Meta bought Instagram for $1 billion . Just two years later, the company went on to acquire WhatsApp for $19 billion . If it loses the lawsuit, Meta faces the risk of having to sell these two applications.

Mark Zuckerberg leaves court on April 15. Photo: Bloomberg .

Zuckerberg himself has considered the prospect of a breakup. FTC lawyers presented him with a 2018 email to the board warning that antitrust cases could reshape Meta’s business.

“As calls for breaking up big tech continue to grow, it’s increasingly likely that we’ll have to split up Instagram, and perhaps WhatsApp, in the next 5-10 years,” Zuckerberg wrote.

Explaining in court on April 15, Zuckerberg said that at that time, he was only reminding people to have a strategy to create the greatest value, while considering topics that politicians might pay attention to.

Legal experts say the FTC has a long way to go before it wins. In the government’s view, Meta has been operating strongly over the past decade by “crushing” competitors through acquisitions.

Additionally, why regulators approved these deals has also become a subject of debate.

Attempts to Split Meta

The lawsuit is part of a broader effort by the U.S. government to rein in the power of Big Tech. The FTC has previously sued Amazon for allegedly suppressing sellers and favoring its own services.

Last year, the US Department of Justice won a lawsuit accusing Google of abusing its monopoly position in the search engine market. A trial to determine a remedy is scheduled for next week.

The agency is also suing Google for its dominance in advertising technology. Apple is also the target of a lawsuit, accusing it of making it difficult for users to leave the iOS ecosystem.

Staff move boxes of documents to the court on April 15. Photo: New York Times .

In its opening statement on April 14, the FTC said Meta acquired Instagram and WhatsApp to consolidate its power, take away users' choice of platforms, and create an advantage over competitors.

Meta’s lawyers denied the allegations, arguing that the company faces significant competitive pressure from TikTok and other platforms. The lawyers said that attempting to undo the mergers after more than 10 years could set a bad precedent.

On April 15, FTC lawyers pressed Zuckerberg to explain internal messages from before buying Instagram and WhatsApp that showed Meta CEO was worried about Facebook’s ability to compete on mobile.

During questioning, Zuckerberg repeatedly said he “couldn’t remember” the thought process behind writing certain emails.

What do the emails say?

Daniel Matheson, an attorney for the FTC, pointed to a series of emails from 2012 between Zuckerberg and Facebook executives. The emails discussed employee performance, past and future potential acquisitions, and the threat of emerging competitors.

In an email to Sheryl Sandberg, then Facebook’s COO, Zuckerberg said he could teach her how to play Settlers of Catan , a popular board game. He also criticized some of his subordinates, saying poor performance was why the company needed to buy Instagram.

“A billion dollars is a very expensive number,” Zuckerberg stressed in court.

David Ginsberg, director of global communications and public affairs at Meta, arrives at court on April 15. Photo: New York Times .

In another email in 2013, Zuckerberg asked to block Facebook ads from foreign competitors, including Kakao and WeChat.

“These companies are trying to build social networks and replace us. The revenue is trivial compared to any other risks,” Zuckerberg wrote.

In court, Meta's CEO repeatedly said that the reason for acquiring Instagram and WhatsApp came from normal business strategy.

“Building new apps is hard… We've tried dozens of apps throughout the company's history, most of which went nowhere,” Meta's CEO emphasized.

Zuckerberg is scheduled to appear in court again on April 16 (local time).

Source: https://znews.vn/mark-zuckerberg-bao-ve-instagram-post1546223.html