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Meta’s Threads to Test Direct Messaging Feature in Select Markets

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Meta Platforms announced it will begin testing a direct messaging feature on its Threads app in select markets, including Hong Kong and Thailand. This new feature will introduce a dedicated inbox within Threads, removing the need for users to switch to Instagram’s messaging platform, CEO Mark Zuckerberg said on Tuesday.

Currently, messages on Threads will not be encrypted. The addition of direct messaging aims to make Threads more competitive with rivals such as X (formerly Twitter), TikTok, and Reddit, enhancing user engagement by offering a more complete social experience.

Threads, launched in 2023 as a direct competitor to X after Elon Musk’s takeover, has grown rapidly and now has over 350 million monthly active users. In April, Meta expanded advertising on Threads to all eligible advertisers worldwide, although the company does not expect Threads to be a major revenue driver in 2025.

Research firm Emarketer projects that Threads’ monthly active users in the U.S. will rise 17.5% to 60.5 million by next year, surpassing X’s expected decline to 50 million users.

Amid U.S. trade restrictions and the rise of AI-powered ad targeting, social media platforms are enhancing their features and user experience to maintain competitiveness in a crowded market.

Meta Requests Court to Dismiss FTC’s Monopoly Allegations Due to Insufficient Evidence

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Meta Platforms, the parent company of Facebook, has requested a federal judge to dismiss the ongoing antitrust case brought by the U.S. Federal Trade Commission (FTC). The FTC alleges that Meta holds an illegal monopoly in the social media market, particularly through its acquisitions of Instagram and WhatsApp. However, Meta argues that the agency has failed to provide sufficient evidence to support these claims in the trial, which has been unfolding since mid-April in Washington, D.C.

The FTC’s case centers on the idea that Meta, formerly known as Facebook, unlawfully maintained its dominance by purchasing potential competitors, thereby stifling competition in the social media space. The agency seeks to reverse these acquisitions, which occurred over ten years ago, aiming to restore competition. Meta counters this by asserting that these acquisitions did not create a monopoly, and instead, the company has faced growing competition, especially from newer platforms like TikTok.

During the trial, Meta highlighted evidence showing that WhatsApp, one of its acquisitions, did not have ambitions to become a direct competitor to Facebook at the time of purchase. Furthermore, Meta presented testimony suggesting that Instagram actually experienced significant growth following its acquisition. Meta also stressed that the FTC failed to demonstrate a clear distinction between various social media apps focused on friends-and-family sharing — such as Facebook, Instagram, and Snapchat — and TikTok, a platform that Meta claims has pushed it to innovate and adapt.

If the judge grants Meta’s motion to rule on the current evidence, the trial could conclude much sooner, potentially ending before June. However, the court could also decide to let the trial continue with both parties presenting further evidence. As the legal battle continues, the outcome could have significant implications for how major tech companies operate and acquire rivals in the competitive social media landscape.

Instagram Co-Founder Claims Mark Zuckerberg Viewed App’s Success as a ‘Threat’

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Instagram co-founder Kevin Systrom has testified in an antitrust trial, claiming that Instagram could have thrived independently and that its growth was viewed as a “threat” by Mark Zuckerberg, the CEO of Meta Platforms. Systrom’s testimony comes as part of the U.S. government’s monopoly case, which aims to reverse Meta’s 2012 acquisition of Instagram. The case, led by the Federal Trade Commission (FTC), suggests that Meta’s purchase of Instagram, now a social media giant with nearly three billion users, was part of a strategy to stifle competition. Instagram is projected to generate a substantial portion of Meta’s U.S. ad revenue this year, underlining its importance to the company’s business model.

During his testimony, Systrom highlighted Instagram’s rapid growth leading up to the acquisition, noting how the app saw a 13-fold increase in users in 2011 alone, the year before the purchase. This surge in popularity, he suggested, indicated Instagram’s potential to succeed on its own. Despite this, Zuckerberg’s approach to Instagram after the acquisition took a more adversarial turn, with Systrom claiming that Meta’s CEO saw Instagram as a competitive threat. Systrom testified that Instagram was starved of resources once it was acquired, and despite the app’s potential, it struggled to get the support it needed from Meta, particularly when it came to hiring additional staff for key initiatives.

Systrom expressed confidence that Instagram could have continued to evolve without the acquisition, including adding crucial features like video support and private messaging. He argued that the company had the necessary infrastructure to support its growth, particularly pointing out that Instagram relied on Amazon Web Services (AWS) for its operational needs. Even when it came to tackling spam and harmful content, Systrom believed that Instagram could have handled these challenges independently, suggesting that scaling the platform’s content moderation efforts was not an insurmountable challenge.

However, when cross-examined by Meta’s lawyers, Systrom admitted that the company’s success was never guaranteed. “It could have gone either way,” he said, acknowledging the inherent risks in the startup world. Despite this, Systrom remained firm in his belief that Instagram had a solid foundation to continue growing. After the acquisition, Systrom described a fluctuating relationship with Zuckerberg, who oscillated between supporting and viewing Instagram as a threat. Systrom also mentioned that after the Cambridge Analytica privacy scandal, Instagram faced a lack of new resources, with no additional employees allocated to crucial areas like video development or data privacy efforts. This resource deprivation, Systrom suggested, played a key role in hindering Instagram’s full potential post-acquisition.