An internal email featured in the Meta antitrust trial reveals that Meta CEO Mark Zuckerberg expressed concerns about the possibility of Instagram’s acquisition negatively impacting Facebook. Zuckerberg indicated that such a scenario might lead to “network collapse of the more engaging and profitable product,” as relayed in a confidential email to other Meta executives.
Zuckerberg suggested several measures to prevent Instagram from overtaking Facebook, such as integrating Meta’s apps to operate as a unified network. This approach was proposed as a potential solution to Facebook’s diminishing cultural relevance. He even contemplated the idea of separating Instagram into a distinct business entity.
During its trial against Meta, the U.S. Federal Trade Commission (FTC) aims to demonstrate that the company functions as a social networking monopoly and that acquiring apps like Instagram and WhatsApp helped maintain its leading market position. The FTC’s case includes emails and other communications, illustrating Zuckerberg’s awareness of Instagram’s threat to Facebook, even post-acquisition.
In an email from May 2018, addressed to key Facebook executives including Meta Chief Product Officer Chris Cox, former COO Sheryl Sandberg, ex-CTO Mike Schroepfer, former Chief Growth Officer (now COO) Javier Olivan, and former CFO David Wehner, Zuckerberg acknowledged a flawed strategy toward the company’s suite of apps.
Zuckerberg was specifically concerned that Instagram’s growth was adversely affecting Facebook, citing internal data showing a notable decline in Facebook engagement when users switched to Instagram. He noted, “We are starting to get more data that suggests this hollowing out of Facebook usage compounds as a larger percent of the population gets on Instagram,” underlining the potential for “cannibalization and network collapse.”
He further speculated that advancing Instagram’s growth posed a significant risk to Facebook, potentially contradicting their growth models, which anticipated co-expansion of both platforms. Zuckerberg warned that promoting Instagram to rival Facebook’s size could have unforeseen negative implications, hinting at a possible “network collapse.”
Furthermore, it was noted that Instagram’s growth primarily stemmed from Facebook’s app distribution and use of the Facebook friend graph. Zuckerberg highlighted that while expanding both products is ideal, there existed a substantial risk of jeopardizing Facebook—the more profitable product—in favor of Instagram.
To mitigate this, Zuckerberg suggested reducing Facebook’s promotions to Instagram and introducing new integrations favoring Facebook. He sought to establish connections between the networks to enhance their functionality as a unified entity. For instance, he proposed that video creators engage effortlessly across both platforms and suggested consolidating voice and video calling services across WhatsApp, Messenger, and Instagram. This vision came to fruition in 2020 with cross-platform messaging, albeit later rolled back.
In his email, Zuckerberg also addressed the challenges in developing new products within Instagram and WhatsApp due to “their founder leadership.” Concerns about demoralizing the Instagram team and retaining co-founders Kevin Systrom and Mike Krieger hampered open discussions about these challenges.
Zuckerberg advocated for strategic branding so that Facebook’s association remained prominent. He proposed appending the Facebook brand to Instagram and WhatsApp. Although Meta rebranded in 2021, the logo is now a staple across all its applications, suggesting a shift from keeping Facebook’s brand at the forefront.
An outcome of the FTC trial could see Meta spinning off Instagram and WhatsApp as separate entities, a move Zuckerberg had once considered viable for preserving Facebook’s growth and focusing Meta’s initiatives. The departure of Instagram’s founders in September 2018 hinted at this looming possibility. Despite this foresight, Meta opted not to divest its acquisitions, although Zuckerberg cautioned of a potential forced separation within 5 to 10 years if regulatory pressures prevailed.
Meta, in its response to this release of emails, minimized their significance, citing them as “out-of-context and years-old” and asserting their irrelevance to current competitive challenges, as conveyed by a Meta spokesperson.
