During the first week of Meta’s antitrust trial, new details emerged regarding how Facebook, now Meta, addressed the competitive threat posed by Instagram in the early 2010s. The U.S. government accuses Meta of violating competition laws by acquiring companies like Instagram and WhatsApp that challenged Facebook’s monopoly. If the U.S. Federal Trade Commission (FTC) succeeds, Meta might be forced to sell Instagram and WhatsApp.
The FTC presented evidence showing Facebook’s awareness of Instagram’s threat as it gained popularity. Internal emails revealed concerns over Instagram’s growth and discussions on how much to offer for the app if acquired. Executives also considered other strategies, such as replicating Instagram’s features or halting its development after acquisition while focusing on Facebook’s products.
These conversations highlight Facebook’s strategy to either acquire or suppress competition, showcasing the aggressive tactics that contributed to Meta’s current dominance in social networking. Some key messages include Mark Zuckerberg’s concerns about Instagram’s rapid growth and his consideration of purchasing Instagram for approximately $500 million to prevent further competition.
— new from TechCrunch