2018 Email Reveals Zuckerberg Considered Instagram Spin-Off Amidst Antitrust Fears

Washington, D.C. – During an ongoing Federal Trade Commission (FTC) antitrust trial against Meta Platforms Inc., an internal email from May 2018 has revealed that CEO Mark Zuckerberg considered spinning off Instagram due to growing concerns over potential antitrust litigation. The revelation, detailed in court proceedings, underscores the long-standing apprehension within the company regarding regulatory scrutiny over its acquisitions.

In the 2018 correspondence, Zuckerberg expressed contemplation about the future structure of the company, stating, > "I'm beginning to wonder whether spinning Instagram out is the only structure that will accomplish a number of important goals." He further noted a "non-trivial chance" that Meta could be compelled to divest Instagram and WhatsApp within five to ten years, acknowledging that "most companies actually perform better after they've been split up." This internal discussion highlights a strategic consideration to preemptively address regulatory pressures.

The FTC's lawsuit alleges that Meta, then known as Facebook, acquired Instagram for $1 billion in 2012 and WhatsApp for $19 billion in 2014 to stifle competition and establish an illegal monopoly in the social media market. The agency contends that these acquisitions were part of a "buy or bury" strategy to neutralize emerging rivals. Lawyers for the FTC presented Zuckerberg's past emails, including one from 2012 where he mentioned buying Instagram to "neutralize a competitor."

Meta, however, disputes the FTC's claims, arguing that it operates in a highly competitive landscape with rivals such as TikTok, YouTube, and Apple's iMessage. The company maintains that its acquisitions fostered innovation and improved the platforms for users, asserting that the FTC's definition of the social media market is too narrow. Zuckerberg, testifying in the trial, has sought to downplay the intent behind his decade-old emails, stating they did not capture the full scope of his interest in the acquired companies.

The high-stakes trial could potentially force Meta to divest Instagram and WhatsApp, significantly reshaping the social media giant's portfolio. The case serves as a critical test for U.S. antitrust enforcement against major technology companies. Zuckerberg reportedly attempted to settle the case for $450 million, a figure significantly lower than the FTC's purported demand of $30 billion, leading to the rejection of the offer and the continuation of the trial.