Meta CEO Mark Zuckerberg once thought about spinning off Instagram to avoid possible antitrust action, according to a 2018 memo revealed in court.
The document came to light during Zuckerberg’s testimony in a federal trial where the FTC is trying to break up Meta’s ownership of Instagram and WhatsApp. In the memo, Zuckerberg wrote, “I wonder if we should consider the extreme step of spinning Instagram out as a separate company.”
He warned that political pressure could force a breakup in the future, especially if a new Democratic president pushed for tougher rules on tech companies.
Although Meta didn’t go through with the idea, the memo shows how seriously Zuckerberg took the risk of antitrust lawsuits.
Zuckerberg also admitted that Instagram had a better camera app than Facebook’s at the time, which influenced the decision to buy the company. The FTC argues this supports its claim that Meta tried to buy out rivals to avoid competition.
Meta says the lawsuit is unfair and that it faces strong competition from TikTok, YouTube, and Apple’s iMessage. The case could be a major test of U.S. efforts to limit Big Tech’s power.
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