Meta CEO Mark Zuckerberg seriously considered spinning off Instagram in 2018 due to growing concerns over antitrust scrutiny, a court document revealed during a high-profile trial in Washington. The document, shown as part of Zuckerberg’s testimony, indicates that Zuckerberg weighed the potential risks of keeping Instagram within Meta, especially as calls for stronger regulation of Big Tech were on the rise.
In the memo, Zuckerberg admitted the possibility of spinning off Instagram to avoid future legal and regulatory challenges, acknowledging that the company could eventually be forced to separate the photo-sharing app, along with WhatsApp, under the threat of government action. “There is a non-trivial chance that we will be forced to spin out Instagram and perhaps WhatsApp in the next 5-10 years anyway,” Zuckerberg noted, referencing the possibility of antitrust actions under a future Democratic president.
At the time, Meta was exploring ways to consolidate its apps and create a more integrated platform. Despite the risks, Zuckerberg ultimately chose not to move forward with the spin-off, opting instead to push forward with integrating Instagram into Meta’s broader ecosystem. However, his internal deliberations underscore just how seriously he took the potential for antitrust intervention, a concern that has become increasingly relevant as the U.S. Federal Trade Commission (FTC) seeks to unwind Meta’s acquisitions of Instagram and WhatsApp.
This legal battle, now playing out in court, echoes similar antitrust concerns raised against other tech giants, including Google, and is seen as a crucial test for the new administration’s stance on Big Tech’s monopolistic practices. The FTC’s case hinges on whether Meta holds an illegal monopoly in the social media space, with competitors like TikTok, YouTube, and Snapchat standing in contrast to Meta’s dominant platforms.
Zuckerberg’s testimony also touched on Meta’s strategy of acquiring competitors, including Instagram. He acknowledged that Instagram’s superior camera technology played a key role in the decision to buy the platform, reinforcing the FTC’s argument that Meta has strategically acquired potential rivals to stifle competition. However, Zuckerberg downplayed the significance of such acquisitions, noting that many spin-offs or breakups of large companies actually result in better performance. Despite this, Meta continues to argue that breaking up the company would harm its ability to compete against rivals like TikTok and YouTube.
As the trial continues, the future of Meta’s acquisitions, and its approach to competition, remains uncertain.
