Facebook founder Mark Zuckerberg has admitted during a high-stakes antitrust trial that the company acquired Instagram due to its camera product that was deemed superior to Facebook's in-house project. This admission lends credence to the Federal Trade Commission's (FTC) claim that Meta strategically acquired emerging competitors to prevent them from challenging its market position.
According to a report by news agency Reuters, Zuckerberg’s admission comes during his second day of testimony, and appears to bolster the (FTC) claims that Meta employed a “buy or bury” strategy to eliminate potential rivals to maintain its market dominance.
“We were doing a build vs. buy analysis,” Zuckerberg stated, adding, “I thought that Instagram was better at that, so I thought it was better to buy them.”
Zuckerberg says Meta often failed to develop its own apps
Zuckerberg also conceded that Meta's attempts to develop its own apps often resulted in failure.
“Building a new app is hard and many more times than not when we have tried to build a new app it hasn't gotten a lot of traction,” he told the court.
“We probably tried building dozens of apps over the history of the company and the majority of them don't go anywhere,” he added.
Meta, however, argues that Zuckerberg's past statements, including a 2008 email stating “it is better to buy than compete,” are irrelevant. The company contends that the FTC has defined the relevant social media market too narrowly, failing to account for intense competition from platforms like TikTok, YouTube, and Apple's messaging app.
Zuckerberg's admission regarding Instagram's superior camera technology has provided a key piece of evidence for the FTC's case. The FTC is seeking to unwind Meta’s acquisitions of Instagram and WhatsApp, arguing that these deals were anti-competitive and aimed at stifling innovation. The trial's outcome could significantly impact Meta's business model.
According to a report by news agency Reuters, Zuckerberg’s admission comes during his second day of testimony, and appears to bolster the (FTC) claims that Meta employed a “buy or bury” strategy to eliminate potential rivals to maintain its market dominance.
“We were doing a build vs. buy analysis,” Zuckerberg stated, adding, “I thought that Instagram was better at that, so I thought it was better to buy them.”
Zuckerberg says Meta often failed to develop its own apps
Zuckerberg also conceded that Meta's attempts to develop its own apps often resulted in failure.
“Building a new app is hard and many more times than not when we have tried to build a new app it hasn't gotten a lot of traction,” he told the court.
“We probably tried building dozens of apps over the history of the company and the majority of them don't go anywhere,” he added.
Meta, however, argues that Zuckerberg's past statements, including a 2008 email stating “it is better to buy than compete,” are irrelevant. The company contends that the FTC has defined the relevant social media market too narrowly, failing to account for intense competition from platforms like TikTok, YouTube, and Apple's messaging app.
Zuckerberg's admission regarding Instagram's superior camera technology has provided a key piece of evidence for the FTC's case. The FTC is seeking to unwind Meta’s acquisitions of Instagram and WhatsApp, arguing that these deals were anti-competitive and aimed at stifling innovation. The trial's outcome could significantly impact Meta's business model.
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