Meta CEO Mark Zuckerberg recently spoke during a U.S. antitrust trial, explaining why Facebook bought Instagram. He said the main reason for the purchase was Instagram’s better camera feature, which was more advanced than what Facebook had at the time.
This trial is part of the Federal Trade Commission’s (FTC) effort to challenge Meta’s past decisions, including its purchases of Instagram and WhatsApp. Regulators are trying to find out if Meta bought these companies to remove competition, rather than creating new features itself.
Zuckerberg said that Facebook did a “build vs. buy” study before the deal. That means the company compared building a similar product on its own or buying an already successful one. Instagram stood out as the better option because of its strong features and growing popularity.
He also admitted that many of Meta’s attempts to build new apps over the years did not work out. This made the Instagram deal seem like the safer and smarter choice at the time.
The trial is part of a bigger effort by U.S. regulators to stop large tech companies from becoming too powerful by buying out smaller companies. They believe that when big companies buy up their future competitors, it can harm innovation and reduce choices for users.
Zuckerberg’s testimony gives insight into how Meta thinks when it comes to growth and competition. While he said the decision to buy Instagram was mainly about its better technology, the FTC is focused on whether such deals hurt other companies and the market.
The outcome of this case could shape how tech companies grow in the future and how closely their actions are watched by regulators.
