Mark Zuckerberg’s emails from over a decade ago are at the center of a historic antitrust trial this week. The US Federal Trade Commission (FTC) has obtained these emails, which reveal Zuckerberg’s thoughts on acquiring Instagram and WhatsApp.
The FTC claims that Meta, formerly Facebook, used these acquisitions to eliminate competition in the social media space. Zuckerberg testified in court on Monday and will continue to do so for three days. Anti-trust law expert Rebecca Haw Allensworth says these emails are crucial evidence for the FTC and may haunt Meta throughout the trial. Experts believe that the outcome of this case may depend on how convincingly Zuckerberg explains these emails.
Critical Emails
Some of the key points from Zuckerberg’s emails include:
- In 2011, he expressed concern that Instagram was “catching up” to Facebook.
- In 2012, he worried that Instagram could “hurt Facebook” and was a “serious threat.”
- He discussed with Sheryl Sandberg, former COO, that Messenger couldn’t compete with WhatsApp and that Instagram was growing faster, leading to the $1 billion acquisition.
- In 2013, he was upset when Evan Spiegel, Snapchat’s founder, rejected a $6 billion buyout offer.
- Other emails show his fear that WhatsApp might be acquired by Google and that Chinese apps like WeChat could replace Facebook.
The FTC has used these emails as evidence that Meta has been trying to eliminate new apps that could challenge its dominance. They are seeking to force Meta to sell Instagram and WhatsApp.
Zuckerberg’s Defense
Zuckerberg has defended his emails, stating that they reflect his concerns about competition rather than anti-competitive intentions. He cited the example of TikTok becoming a fierce competitor in 2019. He also referenced a quote from Intel’s former CEO, “Only the paranoid survive,” to justify his vigilance towards competitors.
Regarding Instagram, he claimed that the acquisition helped the app grow, rather than hindering it. He also explained that discussing the separation of Instagram was a response to political pressure from Congress at the time.
The trial is expected to continue for several years, with the outcome potentially having significant implications for Meta and the tech industry as a whole.
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