Meta mulled spinning off Instagram in 2018 over antitrust concerns
What's the story
Meta CEO Mark Zuckerberg once considered spinning off Instagram from its parent company Facebook, over antitrust litigation risks. The revelation came during the Federal Trade Commission's (FTC) ongoing antitrust trial against Meta. An email penned by Zuckerberg in May 2018, which was presented in court, indicated that he saw spinning off Instagram as a possible solution to a number of urgent problems.
Revelation
This is what Zuckerberg's 2018 email said
In the email, Zuckerberg also expressed his concerns over the growing calls to break up big tech companies. He wrote, "As calls to break up the big tech companies grow, 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." This means he was already considering a possible separation back then.
Acquisition controversy
FTC's antitrust case against Meta centers on acquisitions
The FTC's antitrust case against Meta centers on its purchase of Instagram in 2012 and WhatsApp in 2014. The Commission claims these acquisitions were part of a plan to monopolize the social networking space. The FTC believes Meta shouldn't have been allowed to make these acquisitions in the first place, and is looking to divest these apps from Meta as a possible solution.
Dispute
Meta's response to FTC's allegations
Meta has denied the FTC's allegations, claiming the regulator misrepresents the competitive landscape. The company claims it competes with several rivals such as TikTok and Apple's iMessage, not just other apps like Snapchat. Earlier in the trial, an email from October 2013 was shown where Zuckerberg revealed that Snap CEO Evan Spiegel had rejected his $6 billion offer for Snapchat.
Statement
Zuckerberg's defense of Instagram acquisition
Zuckerberg also defended his decision to acquire Instagram in his email. He said, "Best estimates are that, had Instagram remained independent, it would likely be around the size of Twitter or Snapchat with 300-400 million MAP today, rather than closer to 1 billion." The acronym MAP stands for monthly active people.