Meta CEO Mark Zuckerberg considered spinning off the popular photo-sharing app Instagram into a separate company in 2018 due to growing concerns over the risk of antitrust scrutiny. This information was presented during a high-profile trial in Washington, where the U.S. Federal Trade Commission (FTC) is seeking to unwind Meta's acquisitions of significant assets, including Instagram and WhatsApp.
In his second day of testimony at the trial, Zuckerberg referred to a memo he wrote in 2018, where he discussed whether it might be an extreme step to spin off Instagram as a standalone company. At the time, the company was considering more closely linking its social media platforms. Zuckerberg highlighted that such a consolidation could result in "strong business growth" but warned that it could also diminish the value of Facebook's social network.
Even though Meta ultimately chose not to separate Instagram, Zuckerberg's consideration of the idea reflects the serious threat posed by the antitrust case the company now faces. In the memo, he noted that as calls for breaking up big tech companies grow, the likelihood of Instagram and possibly WhatsApp being spun off independently in the next 5-10 years had increased.
Since being sued by the FTC in 2020, Meta has argued that splitting the company would have a negative impact on its revenues. The FTC, on the other hand, claims that Meta holds a dominant position in social media platforms, with its main competitors being smaller apps like Snap and MeWe.
