Zuckerberg: Facebook Added “Value” Instagram’s Growth

Mark Zuckerberg testified for a second day in a US antitrust trial, defending Meta’s acquisitions of Instagram and WhatsApp against accusations of monopolizing the social media market. The trial could force Meta to divest its popular platforms.

Zuckerberg told the court that Facebook added significant value to Instagram, improving its features, user numbers, and revenue. “Instagram integration ended up going very well; we were able to add way more value to Instagram than we would have expected,” he said.

The Federal Trade Commission (FTC) alleges that Meta’s acquisitions were aimed at eliminating competition. FTC attorney Daniel Matheson presented emails from 2012, where Facebook’s former CFO listed “neutralizing a competitor” as a reason for buying startups like Instagram.

Zuckerberg downplayed concerns about competition, instead highlighting Facebook’s ability to grow acquired apps. “After that, we basically felt more confident that we could identify other social apps, potentially acquire them and grow them faster (than they would have on their own),” he said.

Zuckerberg also claimed that Facebook could have accelerated Snapchat’s growth if it had acquired the platform in 2013. “For what it’s worth, I think we would have accelerated their growth,” he said.

The FTC argues that Meta’s acquisitions stifled competition, while Meta’s defense attorneys counter that significant investments transformed the acquired apps into successful platforms. The trial’s outcome hinges on how the FTC defines Meta’s market.

When asked about Facebook and Instagram’s main competition, Zuckerberg named YouTube and TikTok, citing video as a primary way people share content. “On the video front, Meta has a lot of catching up to do,” he admitted.

The trial’s outcome could have significant implications for Meta’s future, potentially forcing the company to divest Instagram and WhatsApp.

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