Meta CEO Mark Zuckerberg considered spinning off Meta-owned Instagram in 2018 due to increasing concerns over antitrust scrutiny, according to an internal memo revealed during his testimony at a trial this week.
The U.S. Federal Trade Commission (FTC) is looking to dismantle Meta’s previous acquisitions of Instagram and instant-message app WhatsApp.
It argues the company purchased its competitor to maintain a monopoly in social networking.
In the memo, Zuckerberg noted, “There is a non-trivial chance that we will be forced to spin out Instagram and perhaps WhatsApp.”
Although Meta ruled out the spin-off, the document shows that Zuckerberg already knew the potential risks years before the recent trial.
During the hearing, Zuckerberg advocated for Meta’s acquisition of Instagram, stating the app consist of an improved camera than Facebook.
However, the FTC further argued a “buy or bury” strategy to impede rivals. Meta stated that its platforms still face strong competitors such as YouTube and TikTok.
Zuckerberg confessed that Meta had previously tried to build multiple apps, but most of them failed to garner attraction.
If the FTC wins the case, Meta may be required to separate Instagram and WhatsApp from the company, a transformative move that would reshape the entire social media industry.
