Mark Zuckerberg considered spinning off Instagram in 2018 amid fears of antitrust action, according to an internal email revealed in Meta's federal trial.
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| An antitrust trial reveals Mark Zuckerberg once considered spinning off Instagram due to growing legal risks — a move he said could boost performance. Image: CH |
WASHINGTON, USA — April 16, 2025:
Meta CEO Mark Zuckerberg considered spinning off Instagram as early as 2018 due to growing antitrust concerns, according to an internal email presented Tuesday during a landmark federal trial that could determine the future of the tech giant.
The email, introduced by the Federal Trade Commission (FTC) on the second day of testimony, reveals Zuckerberg speculated that spinning off Instagram might be the only way to achieve key business goals as legal scrutiny of major tech firms intensified.
“There is a non-trivial chance we will be forced to spin Instagram (and maybe WhatsApp) out in the next five to ten years,” Zuckerberg wrote, adding that “most companies actually perform better after they've been split up.”
When pressed in court about which corporate examples he was referencing, Zuckerberg admitted, “I’m not sure what I had in mind then.”
Zuckerberg’s remarks came as part of his extended testimony, now spanning over seven hours across two days, in a trial that could force Meta to divest from both Instagram and WhatsApp. The FTC accuses the company of monopolizing the social media market by acquiring emerging competitors to suppress competition.
FTC attorney Daniel Matheson questioned Zuckerberg about internal discussions prior to Meta’s 2012 acquisition of Instagram for $1 billion. He referenced emails where Zuckerberg described Instagram as a “rapidly growing, threatening network,” and other startups like Path as potential disruptors.
Zuckerberg defended the acquisition as strategic, not anti-competitive.
“We were developing a mobile camera app, but Instagram had built something better. I believed acquiring them would help us build a better product together,” he said.
He also pushed back on the FTC’s claim that the acquisition was meant to neutralize a competitive threat.
“That mischaracterizes what I said. It wasn’t about eliminating competition—it was about innovation,” he added.
Meta's legal team began its defense Tuesday afternoon, with attorney Mark Hansen arguing that the company operates in a highly competitive landscape, offering free services in a crowded field of rivals.
“It’s very competitive,” Zuckerberg echoed. “Charging users would drive them to other platforms.”
The FTC’s lawsuit, originally filed in 2020 under President Donald Trump, focuses on Meta’s acquisitions of Instagram and WhatsApp — apps that helped the company pivot from desktop to mobile and maintain relevance with younger users. WhatsApp, acquired for $22 billion in 2014, and Instagram have become core parts of Meta’s global dominance.
The trial, overseen by U.S. District Judge James Boasberg, follows the judge’s 2024 ruling rejecting Meta’s request for summary judgment. The outcome could reshape the social media landscape by forcing Meta to divest from its most powerful platforms.
Testimony is set to continue Wednesday in Washington.