Meta CEO Mark Zuckerberg testified for nine hours over two days in a federal courthouse in Washington, DC, as part of the ongoing antitrust case between Meta and the Federal Trade Commission (FTC).
During his testimony, Zuckerberg discussed various ideas he considered over the years, including making Instagram a separate company, buying Snapchat, and creating a feed of only ads. The FTC is alleging that Meta has a monopoly in “personal social networking services,” a market it defines as connecting with friends and family, including apps like Snapchat and MeWe. Meta argues that this definition is narrow and purpose-built, and that the market includes a wider range of services.
Zuckerberg defended Meta’s position, arguing that the market is “fluid” and includes competitors like TikTok, YouTube, and iMessage. He resisted the FTC’s attempts to establish its view of the market, instead highlighting the nuances of how Meta’s products overlap with other services. For instance, while Facebook advertises itself as a place to connect with friends, Zuckerberg noted that this is likely just the tagline that tested most favorably.
The FTC presented internal documents that revealed Zuckerberg’s past considerations and concerns. In 2013, Zuckerberg offered to buy Snapchat for $6 billion, but CEO Evan Spiegel turned down the deal. Zuckerberg speculated that if Spiegel had accepted, Meta would have grown Snapchat much faster. Other documents showed Zuckerberg suggesting the idea of wiping users’ friends lists to bring back early magic to Facebook and considering making a feed of only ads because users think they’re as good as regular content.
The FTC is arguing that Meta acquired Instagram and WhatsApp to eliminate potential competitors and maintain its dominance in the social media market. Zuckerberg testified that his acquisitions of these apps made them into what they are today. The case could potentially force Meta to sell off Instagram and WhatsApp. Sheryl Sandberg is expected to testify after Zuckerberg.
Throughout his testimony, Zuckerberg provided insight into Meta’s strategic considerations and the rationale behind its acquisitions. The FTC’s case hinges on its definition of the market and whether Meta has monopoly power within it. Meta’s defense relies on a broader definition of the market and the argument that its products compete with a wide range of services.
