In a landmark antitrust trial, Mark Zuckerberg, the CEO of Meta, testified that he purchased Instagram and WhatsApp because building new apps was challenging. He faced questions about whether he was trying to eliminate competition. The case, Federal Trade Commission v. Meta Platforms, alleges that Meta engaged in a “buy-or-bury” strategy by acquiring Instagram and WhatsApp. The FTC is seeking to break up Meta if successful.
Legal experts believe the FTC faces difficulties in proving Meta’s anti-competitive actions, as the acquisitions were previously approved. The case is part of a broader effort by U.S. regulators to curb the power of tech giants like Meta, Amazon, Google, and Apple. The FTC argues that Meta’s acquisitions limited consumer choices in social networking, while Meta’s lawyers insist the company faces plenty of competition.
During the trial, lawyers pressed Zuckerberg to explain internal communications regarding the purchases of Instagram and WhatsApp. Zuckerberg’s emails expressed concerns about competing on mobile devices and the threat of upstart competitors. He criticized executives for lagging performance, citing the need to buy Instagram for $1 billion.
Zuckerberg is expected to testify for a total of seven hours, with Sheryl Sandberg and Kevin Systrom also set to testify. The trial highlights the challenges regulators face in reining in the power of tech giants and ensuring fair competition in the market.
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