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2w ago

Instagram Co-Founder Testifies Zuckerberg Limited App’s Growth to Protect Facebook

Kevin Systrom told the court that Meta CEO Mark Zuckerberg saw Instagram as a threat and withheld resources to curb its rise after the 2012 acquisition.

Instagram co-founder Kevin Systrom has testified that Mark Zuckerberg came to see the platform's growth as a "threat" to Facebook’s dominance.
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Meta CEO Mark Zuckerberg at UFC 313 in Las Vegas
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Overview

  • Kevin Systrom testified that Instagram experienced explosive growth before its $1 billion acquisition by Facebook in 2012 and could have succeeded independently.
  • Systrom claimed Zuckerberg underinvested in Instagram post-acquisition, denying resources for privacy, video, and Stories features to limit competition with Facebook.
  • Internal documents revealed Zuckerberg viewed Instagram’s growth as a potential threat to Facebook’s dominance, fearing it would lead to a decline in Facebook’s user engagement.
  • The FTC argues Meta’s acquisitions of Instagram and WhatsApp were anticompetitive moves to neutralize rivals, seeking divestiture to restore competition.
  • Meta maintains its acquisitions fostered growth and innovation, arguing it competes in a broader ecosystem that includes TikTok, YouTube, and other platforms.