Instagram co-founder says Mark Zuckerberg saw app growth as a “threat” to Facebook, starving the platform of resources



  • Instagram co-founder Kevin Systrom testified That Mark Zuckerberg saw Instagram as a threat to Facebook’s advantage and after getting it, it starved the app of resources and support. The testimony is part of the FTC’s groundbreaking case against Meta, claiming it attempted to strengthen its illegal social media monopoly through its acquisition of Instagram.

Mark Zuckerberg showed Instagram growth to A “Threat” to Facebook’s control, Instagram Co-founder Kevin Systrom testifies in a groundbreaking anti-trust case against the Federal Trade Commission meta.

On Tuesday, Systrom testified that Instagram could thrive independently and does not require meta infrastructure or resources. He said he believes that if the company remains independent, it will be able to launch key features such as private messaging and video features.

Later, during cross-examination by Meta’s lawyers, Systrom admitted Its Instagram growth may be “either way,” but it maintained that “there is a low chance of us failing.”

The testimony boosts the FTC’s argument that Meta competed with Instagram and subsequent WhatsApp and acquired Instagram and subsequent WhatsApp to establish an illegal monopoly in the social media market. The FTC is trying to prove that if Instagram had been a fast-growing competitor and an independent company, it would have grown into a full-fledged rival.

Meta representatives did not respond immediately. Fortune Request a comment. Previous statements claim the company is fighting against various social media rivals, including Tiktok.YouTubeimessage etc. Meta also argues that Instagram’s explosive growth could not have been possible without the support of the company. In the courtroom, Meta’s lawyers detailed the investments to build Instagram capabilities.

The company has emphasized earlier The Instagram claimed that only 13 employees were earning money at the time of the acquisition, and that much of the core functionality of Instagram today was built with Meta technology.

“More than a decade after FTC reviewed and cleared the acquisition, the Commission’s lawsuit in this case sends a message that the transaction is not truly final. Regulators should help innovate America rather than disbanding America’s great companies and bringing more benefits on important issues like AI,” the company said in a previous statement.

The FTC is about to hoist the WhatsApp and Instagram Meta acquisition deal. If Meta is forced to spin-off on Instagram, the company’s advertising revenue could be expensive.

Resource Limitations

Systrom continued to lead Instagram after the acquisition, saying it felt that Meta was “underinvestment” in Instagram and giving it “zero resources.”

Several emails released as part of the trial revealed Systrom’s complaints about Meta’s lack of investment in Instagram. This includes those sent to former Chief Technology Officer Mike Schroepfer.

He testified that platforms are routinely overlooked when it comes to resource allocation, and that in many cases, critical support such as staffing of key initiatives, such as video development and data privacy programs, is often denied. After the Cambridge Analytica scandal urged Meta to strengthen its privacy infrastructure, Systrom noted that Instagram has not received additional personnel despite increasing importance within the company.

He also testified in 2018 that Zuckerberg began to reduce internal support for Facebook on Instagram. For example, notifications and links that send people back to photo sharing apps because they believed the success of the app was concomitant with Facebook’s growth.

“He believed we were hurting Facebook’s growth,” Systrom said during the trial.

“He’s always been very happy to have an Instagram in his family because it’s growing so fast and we did a great product job,” Systrom said. “But as the founder of Facebook, he feels a lot of emotion about it and I think it means Instagram and Facebook.”

This story was originally introduced Fortune.com


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