Instagram co-founder Kevin Systrom testified in federal court this week that Meta CEO Mark Zuckerberg deliberately limited resources to Instagram after acquiring the platform, fearing its rapid growth could outshine Facebook. Systrom’s testimony is a key part of the Federal Trade Commission’s ongoing antitrust case against Meta, alleging the company used its power to crush competition and form an illegal monopoly.
“Mark was not investing in Instagram because he believed we were a threat to their growth,” Systrom said, during more than six hours of testimony in Washington, D.C. While acknowledging Instagram’s success within Meta, Systrom emphasized that Zuckerberg’s decisions were shaped by a sense of rivalry. “I think there were real human emotional things going on there,” he said.
The FTC argues that Meta’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were strategic moves to eliminate emerging competition in the social media market. The agency claims the “buy-or-bury” approach helped Zuckerberg consolidate power at the expense of innovation and user choice.
Evidence submitted includes internal emails showing frustration from Instagram leadership, with former Chief Technology Officer Mike Schroepfer acknowledging financial limitations, stating, “We also have areas that are ‘starving’ for funds.”
The FTC’s case, which began under President Donald Trump and continues under President Biden, seeks to break up Meta by forcing the divestiture of both Instagram and WhatsApp. These platforms now serve over two billion active users each.
Meta has dismissed the FTC’s challenge, calling it meritless. In a statement, the company argued, “More than 10 years after the FTC reviewed and cleared our acquisitions, the Commission’s action in this case sends the message that no deal is ever truly final.”
The case underscores ongoing scrutiny of Big Tech’s market influence and the growing bipartisan push to rein in Silicon Valley giants through antitrust enforcement.
