Internal documents from Facebook, now Meta, reveal Mark Zuckerberg and other executives' anxieties about Instagram's rapid user growth and the potential threat it posed to Facebook's market share. Zuckerberg noted Instagram's fast-growing user base and daily photo uploads in early 2011 and expressed worry about this continuous growth throughout that year and into 2012.
Chris Cox, Facebook's Chief Product Officer, also highlighted Instagram's success, emphasizing the popularity of its simple photo-sharing app and its impact on Facebook's own mobile usage. Zuckerberg later observed that many users preferred uploading photos to Instagram over Facebook, creating a significant concern for the company.
Facing the growing threat, Facebook considered acquiring Instagram, even discussing a potential price of $500 million. The internal discussions show Zuckerberg and other executives weighing the pros and cons of buying or even potentially stifling Instagram's growth by not adding features and focusing on internal projects. Zuckerberg even suggested buying other competitors like Path, Pinterest, and Evernote to gain more time in the market, emphasizing the need to quickly acquire them before they became too big a threat to Facebook.
The revealed strategy included either purchasing competitors to eliminate threats or absorbing their functionality into existing Facebook products. These actions demonstrate a proactive strategy to maintain Facebook's dominance in the social media landscape.
The first week of the Meta antitrust trial brought new revelations about how the company formerly known as Facebook approached the competitive threat posed by Instagram in the early 2010s.
The U.S. government is accusing Meta of violating competition laws by acquiring companies like Instagram and WhatsApp that threatened the Facebook monopoly. If lawyers for the U.S. Federal Trade Commission (FTC) are successful, the government could force Meta to break up its business by selling off Instagram and WhatsApp.
As part of the trial, the FTC shared compelling evidence to demonstrate that Facebook was very much aware of the risk Instagram created for its business as the photo-sharing app grew in popularity. In documents containing Facebook’s internal emails, Facebook execs fret over Instagram’s growth and discuss how much to pay for the app, if Facebook were to acquire it.
The company execs also discuss other strategies for limiting Instagram’s growth, including copying its functionality and releasing an app of their own, or buying the app and then no longer adding new features to it while working on its own products.
Facebook’s strategy to either buy or bury its competition is on display in these conversations, according to the government’s arguments. In addition to showing how the company was thinking about its competition at the time, the messages are indicative of the cutthroat strategies that have allowed Meta to become the social networking behemoth it is today.
Some of the highlights from these messages are below.
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