WASHINGTON, D.C. — On Wednesday, Mark Zuckerberg, CEO of Meta, refuted in court allegations that his company acquired competing platforms like Instagram and WhatsApp with the intent to eliminate competition. This statement marked the conclusion of his testimony in a significant antitrust lawsuit.
This situation might lead to the owner of Facebook being compelled to sell off the two applications, which have become global giants since they were acquired.
On his third and final day of testimony in a federal courthouse in Washington, Zuckerberg challenged the primary assertion made by the Federal Trade Commission—that Meta, formerly known as Facebook, eliminated whatever it perceived as competitive challenges.
When Meta lawyer Mark Hansen questioned him about whether his intention was to get rid of competitors through the acquisitions of photo-sharing platform Instagram and messaging service WhatsApp, the co-founder of Facebook answered with a simple “No.”
He mentioned that Instagram, bought in 2012, was appealing due to its “camera and photo-sharing features,” however, he didn’t see it as being strongly competitive with what they offered overall.
Regarding WhatsApp, which was acquired after two years, Zuckerberg stated under oath that he considered the application to be technologically advanced; however, he viewed its creators as lacking ambition when it came to “maximizing the potential impact they could achieve.”
“He essentially ended up advocating for additional items,” he stated in court.
Zuckerberg stated that Facebook utilized its size and assets to develop Instagram and WhatsApp into applications now utilized by billions of individuals.
Sheryl Sandberg, who previously served as the COO at Meta, gave her testimony following Zuckerberg and mirrored many of the points he made before the court.
According to Sandberg, Meta has been compelled to face off against numerous competitors, such as the giant tech company Google, amid escalating online rivalry.
“Each time you use your computer or phone, you get to choose how you allocate your time,” Sandberg stated.
What all these producers are vying for is essentially your time and focus.
TikTok as new threat
An essential aspect of the legal showdown involves the Federal Trade Commission effectively outlining Meta’s marketplace for the judge.
The U.S. government contends that Facebook and Instagram hold significant sway over applications designed for connecting with family and friends, a sector which excludes platforms like TikTok and YouTube.
Meta’s legal representatives argue that significant financial inputs turned these purchases into the major successes they represent now. Additionally, they point out that Meta’s applications are accessible at no cost to users and encounter strong rivalry from competitors.
The case was initially submitted in December 2020, during the final moments of President Donald Trump’s first term as president.
Zuckerberg, ranked as the globe’s third wealthiest individual, has paid multiple visits to the White House in his attempts to convince the president to opt for a settlement rather than pursuing the litigation.
In his lobbying endeavors, Zuckerberg donated to Trump’s inaugural committee and revamped the platform’s content moderation guidelines.
He bought a $23 million house in Washington, which appeared to be an attempt to reside closer to the heart of political influence.
On Wednesday, after around 12 hours of testimony, Zuckerberg concluded his remarks by addressing TikTok, stating that it now poses possibly the greatest challenge to both Instagram and Facebook.
As Meta observed a slowdown in the growth of its applications due to the success of the China-based short-video sharing phenomenon, the U.S. technology giant introduced a TikTok-like Reels function to counterattack in the market, as stated by Zuckerberg.
“Despite this, TikTok remains larger than both Facebook and Instagram, and I am not fond of seeing our rivals outperform us,” he stated in court.
As videos have progressed into a preferred type of content on the internet, especially via smartphones, YouTube has emerged as strong rivalry for Meta, according to what the top executive stated.