Meta’s CEO, Mark Zuckerberg, took the stand to address allegations from the US Federal Trade Commission (FTC) that the company engaged in anti-competitive practices by acquiring rival social media platforms, specifically Instagram and WhatsApp. This trial marks a significant moment for Zuckerberg, who is set to testify over two days about these critical acquisitions.
The FTC’s case could have substantial implications for Meta, potentially leading to a forced divestiture of its major platforms, effectively dismantling its digital advertising powerhouse. Meta claims a vast user base of 3.3 billion daily users across its services, a key aspect of its advertising strategy, which generated over $160 billion in revenue last year. However, the government argues that this success is not indicative of consumer choice but rather reflects a lack of viable alternatives to Meta’s offerings.
In response, Meta’s legal team contended that there is ample competition in the social media sector and noted that both acquisitions were previously approved by regulators. The FTC asserts that these purchases were designed to stifle competition by acquiring emerging rivals rather than competing against them.
During the proceedings, an email from Zuckerberg dated 2011 revealed his rationale for acquiring Instagram, highlighting the competitive threat it posed to Facebook’s efforts in mobile photography. He noted that Facebook was lagging in this area and expressed concern over Instagram’s growth as a formidable competitor.
The FTC also probed into Facebook’s evolution as a platform, focusing on its shift from being a space for personal connections to one that prioritises content discovery, including news feeds and groups. Zuckerberg acknowledged this transformation, suggesting that while user engagement with friends may have decreased, the platform continues to place importance on these relationships.
A significant part of Zuckerberg’s testimony revolved around the messaging capabilities integrated into Meta’s platforms. He described messaging as essential to the overall user experience, allowing content sharing among users, indicating its importance to Meta’s service ecosystem. Furthermore, he agreed with comments made in a 2022 internal email exchange about strategising for Facebook’s future amid growing competition from platforms like TikTok and Instagram.
Zuckerberg’s defence centres on the argument that Meta’s acquisitions were not solely about creating a monopoly but about bolstering its competitiveness in a rapidly evolving digital landscape. The outcome of this case could redefine Meta’s operational structure and the social media landscape at large.