Meta CEO Mark Zuckerberg Considered Spinning Off Instagram in 2018 Over Antitrust Fears, Trial Reveals

By Staff Writer . Tech & Legal Affairs . April 16, 2025

Washington, D.C. — Meta CEO Mark Zuckerberg once privately considered spinning off Instagram from the company due to concerns over potential antitrust litigation, according to a 2018 email revealed during the Federal Trade Commission’s (FTC) ongoing trial against the tech giant.

The email, introduced during Zuckerberg’s testimony on the second day of the trial, included his reflection that “spinning Instagram out” might be necessary to achieve certain strategic goals, particularly amid growing scrutiny of big tech firms. He also acknowledged that there was a “non-trivial chance” that regulators might force Meta to divest Instagram or WhatsApp within five to ten years.

“The corporate history is that most companies actually perform better after they’ve been split up,” Zuckerberg wrote, though he admitted in court that he couldn’t recall the specific examples he had in mind when writing that statement.

FTC Alleges Monopoly via Acquisitions

Zuckerberg’s remarks are a central focus in the FTC’s lawsuit, which accuses Meta — formerly Facebook — of illegally monopolizing the social media market by acquiring and stifling potential competitors like Instagram (acquired in 2012 for $1 billion) and WhatsApp (acquired in 2014 for $22 billion).

FTC attorney Daniel Matheson pressed Zuckerberg on internal communications in which Instagram was described as a “rapidly growing, threatening network.” In other emails, Zuckerberg discussed buying out potential rivals to reduce competition.

Zuckerberg defended his past remarks by saying they were taken out of context and were part of early strategic discussions, not definitive decisions. He maintained that Meta’s intent was to build better products, not eliminate competition.

“I think that mischaracterizes what the email was,” Zuckerberg said, denying that the primary goal of the Instagram acquisition was to neutralize a threat.

Meta’s Competitive Landscape Under Scrutiny

In his defense, Zuckerberg emphasized the competitive nature of the social media industry, citing the availability of free alternatives like Snapchat, TikTok, and YouTube. Meta attorney Mark Hansen echoed this sentiment, stating that the company does not have monopoly power and that its services are offered for free to users.

Zuckerberg noted that monetizing Facebook directly would alienate users due to the wide availability of similar free services.

Why This Trial Matters

This case represents a landmark test of the FTC’s ability to regulate Big Tech under renewed scrutiny. Filed in 2020 during President Donald Trump’s first term, the lawsuit challenges Meta’s long-standing acquisitions and seeks to unwind its ownership of Instagram and WhatsApp.

Critics argue that Meta’s acquisitions helped it dominate the market by blocking innovation and reducing consumer choice, especially among younger demographics that migrated from Facebook to platforms like Instagram and WhatsApp.

What’s Next

U.S. District Judge James Boasberg is presiding over the case. He has already denied Meta’s request for a summary judgment, ensuring that the full trial will proceed.

More testimony from Zuckerberg is expected, along with appearances from additional Meta executives and FTC experts. The trial outcome could have broad implications for future tech mergers, potentially reshaping the landscape of U.S. antitrust enforcement in the digital age.