Antitrust Case Focuses on “Buy or Bury” Strategy

Mark Zuckerberg, CEO of Meta, conceded during an antitrust trial this week that Meta’s acquisition of Instagram was partly motivated by Instagram’s superior camera technology. This admission has intensified scrutiny of Meta’s acquisition strategies,especially concerning allegations that the company employed a “buy or bury” approach to neutralize potential competitors and maintain an illegal monopoly in the social media landscape.

We were doing a Build Vs. Buy analysis… I thought instagram was better in this field, so I thought it was better to buy it.
Mark Zuckerberg, CEO of Meta

The Federal Trade Commission (FTC) is currently challenging Meta’s acquisitions of both Instagram and WhatsApp, arguing that these acquisitions stifled competition and harmed consumers. This case, initiated during the previous governance, is now viewed as a crucial test of the current administration’s commitment to regulating Big Tech companies.

Zuckerberg Acknowledges Challenges in Internal App Development

During his testimony, Zuckerberg also admitted to the difficulties Meta has faced in developing successful apps internally. He acknowledged that numerous attempts to create new apps have failed to gain traction.

Building a new app is difficult and many times, when we tried to build a new app, it hasn’t been very successful…We probably tried to build dozens of apps throughout the company’s history and most of them did not go anywhere.
Mark Zuckerberg, CEO of Meta

This admission potentially undermines Meta’s defense that it acquired Instagram solely for its technology, suggesting that eliminating a potential competitor was also a significant factor.

FTC Argues Meta Holds Monopoly Despite Competition

Meta contends that the FTC’s definition of the social media market is too narrow and fails to account for the intense competition it faces from platforms like TikTok (Bytedance), YouTube (Alphabet GOOG), and Apple’s AAPL messaging app. Though, the FTC argues that Meta holds a monopoly in the specific market of platforms used to share content with close friends and family. According to recent data, Meta platforms still dominate this segment, with a combined user base exceeding [Insert Current Statistics Here] monthly active users.

The FTC further asserts that platforms like X, TikTok, YouTube, and Reddit Red, which cater to content sharing with strangers based on shared interests, are not interchangeable with Meta’s platforms.

Implications for Big Tech Regulation

This antitrust case against Meta is being closely watched as it could set a precedent for how Big Tech companies are regulated in the future. A ruling against Meta could lead to the forced divestiture of Instagram and WhatsApp, potentially reshaping the social media landscape. The outcome of this trial will likely influence future antitrust enforcement actions and the overall regulatory environment for technology giants.