WASHINGTON D.C. – Meta CEO Mark Zuckerberg took the stand in a high-stakes US antitrust trial today, defending the company’s 2012 acquisition of Instagram. His testimony centered on the assertion that Instagram’s superior camera technology, at the time, was a key factor in his decision to acquire the burgeoning photo-sharing platform.
Facing scrutiny from the Federal Trade Commission (FTC), which is challenging Meta’s acquisitions of both Instagram and WhatsApp, Zuckerberg explained the strategic rationale behind the deal. He stated that Meta conducted a thorough “build versus buy” analysis, ultimately concluding that Instagram offered a significantly better product, particularly its camera feature, than what Facebook’s internal teams were developing.
“Instagram had built a really strong and unique product, especially their camera,” Zuckerberg stated under oath. He further admitted that Meta had faced numerous failures in its attempts to launch new, successful applications over the years, underscoring the appeal of acquiring an already thriving platform like Instagram.
The FTC argues that Meta’s acquisition of Instagram, and later WhatsApp, stifled competition in the social media and messaging markets. They contend that instead of competing with these emerging rivals, Meta chose to eliminate them through acquisition, hindering innovation and potentially harming consumers.
Zuckerberg’s testimony is a crucial part of Meta’s defense, attempting to portray the Instagram acquisition as a strategic move driven by the desire to integrate innovative technology and enhance user experience, rather than a calculated effort to eliminate a potential competitor.
This trial is a significant front in the broader push by US regulators to investigate the practices of major technology companies. There is growing concern that these giants have used their financial power to acquire promising startups, not to foster innovation, but to consolidate their market dominance and prevent the emergence of genuine competition. The outcome of this trial could have significant implications for future tech mergers and acquisitions, and the regulatory landscape governing the industry.