Meta antitrust trial: Zuckerberg denies buying WhatsApp to kill competition
What's the story
Yesterday, Meta CEO Mark Zuckerberg appeared for the third time in a US federal court to testify.
The testimony was in the case of an antitrust suit filed against his company by the Federal Trade Commission (FTC).
The FTC alleges that Meta acquired Instagram and WhatsApp to kill competition. However, Zuckerberg denied these allegations during his court appearance.
Market dynamics
Meta's market position and global competition
Notably, Zuckerberg was the first witness in the FTC's case against Meta.
His attorney Mark Hansen argued that Meta does not dominate the social media industry and faces "stiff global competition."
During his testimony, Zuckerberg highlighted concerns about competition from TikTok, a Chinese company owned by ByteDance, and YouTube owned by Google parent Alphabet.
Denial
Response to FTC's allegations
The FTC used Zuckerberg's emails about Instagram's growth to insinuate that he was threatened by the company.
However, Zuckerberg clarified that these conversations were just curious in nature, as he is focused on understanding what others create.
He denied any intention of eliminating rivals through the acquisitions of Instagram and WhatsApp, saying "No" when Hansen asked him if this was his intent.
Acquisition insights
Zuckerberg's perspective on Instagram and WhatsApp acquisitions
Defending his Instagram and WhatsApp acquisitions, Zuckerberg said he had "no intention of acquiring Instagram only to slow its development and end a threat."
He said his focus was on running it as an "independent brand."
On WhatsApp acquisition, he denied FTC's allegations about fearing the company's potential. He clarified his interest in buying it was due to its usage and value.
Ongoing trial
FTC's stance and trial proceedings
The FTC alleges that Meta has monopolized technology connecting friends and family, to generate enormous profits, despite declining consumer satisfaction.
The case was first filed in 2020, with the FTC seeking to split WhatsApp and Instagram from Meta.
The full trial is expected to continue for several weeks, with testimonies from Facebook's ex-COO Sheryl Sandberg, former CTO Mike Schroepfer, and Instagram co-founder Kevin Systrom, among others.