Mark Zuckerberg Accused Of Starving Instagram's Growth By Co-Founder Kevin Systrom In A Testimony Supporting FTC Breakup Case

Instagram co-founder Kevin Systrom has testified against Meta Platforms Inc. FB CEO Mark Zuckerberg, alleging that the latter intentionally impeded Instagram’s growth. This testimony supports the U.S. Federal Trade Commission’s ongoing monopoly trial, which could potentially result in the break-up of Meta.

What Happened: Systrom accused Meta of not providing adequate resources to Instagram post its acquisition in 2012, thereby limiting its growth potential, as reported by the Financial Times. The FTC’s case alleges that Meta deliberately curtailed Instagram’s growth to prevent a “network collapse” of Facebook.

Systrom further stated that Zuckerberg’s perception of Instagram as a threat to Facebook’s growth was a key factor behind the decision to withdraw several tools initially provided by Meta to aid Instagram’s growth. He also claimed that Meta’s failure to provide the necessary staff for Instagram’s growth was “one of the reasons” he left the company in 2018.

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Meta has refuted these allegations, stating that “out-of-context and years-old documents about acquisitions that were reviewed by the FTC more than a decade ago will not obscure the realities of the competition we face or overcome the FTC's weak case.”

Why It Matters: The trial is ongoing, with Meta’s lawyer cross-examining Systrom, arguing that the social media company had helped drive growth at Instagram, which had just 13 staff and no revenue when it was acquired.

This trial follows a series of allegations against Meta. As the trial began, former FTC Chair Lina Khan accused Meta of using monopoly power to acquire smaller rivals like Instagram and WhatsApp.

The FTC also alleged that Meta used a “buy or bury” strategy to monopolize social networking, highlighting a 2008 email from Zuckerberg stating it was "better to buy than compete".

The FTC’s lawsuit claims that Meta has illegally built a “social networking monopoly” through years of “anticompetitive conduct.” If the government wins the case, Meta could be forced to sell off Instagram and WhatsApp.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.