In 2018, Meta CEO Mark Zuckerberg seriously considered spinning off Instagram, fearing increasing antitrust scrutiny, according to a document presented during a trial in Washington. The document was revealed on the second day of Zuckerberg’s testimony in a high-profile case where the U.S. Federal Trade Commission (FTC) is attempting to reverse Meta’s acquisitions of Instagram and WhatsApp. This legal battle aims to undo the mergers, which the FTC claims reduced competition in the social media market.
The memo, shown during the trial, revealed Zuckerberg’s candid thoughts on the matter. In it, he mused, “I wonder if we should consider the extreme step of spinning Instagram out as a separate company.” At the time, Meta was contemplating a major reorganization, aiming to better integrate its social media platforms. However, Zuckerberg also acknowledged that consolidating the apps could foster “strong business growth,” even though it could risk undermining Facebook’s flagship app and its broader family of services.
Despite these concerns, Meta ultimately decided against spinning off Instagram, choosing instead to push forward with its integration plans the following year. The decision not to break off Instagram underscores Zuckerberg’s assessment of the antitrust risks at play. The document reflects his awareness of the potential legal and regulatory challenges Meta might face, with antitrust pressure mounting in the tech industry.
Zuckerberg’s memo also highlighted a broader concern about the future of big tech. He expressed that, with rising calls to dismantle large tech corporations, it was likely that Meta could face forced separations in the future. Specifically, he noted that a shift in U.S. leadership, particularly under a “next Democratic president,” could lead to actions to break up major tech companies, including Meta’s prized acquisitions like Instagram and WhatsApp.