Mark Zuckerberg acknowledges TikTok’s impact on slowing Meta’s growth trajectory.
Mark Zuckerberg recently testified as a witness in the antitrust lawsuit brought against Meta by the U.S. Federal Trade Commission (FTC). In his testimony, the CEO acknowledged that the rapid growth of TikTok has had a significant impact on slowing Meta’s expansion. Should the FTC prevail in this lawsuit, it could compel Meta to divest popular platforms like Instagram and WhatsApp.
Meta, the parent company of platforms such as Instagram, Facebook, and WhatsApp, is currently embroiled in various antitrust trials. Zuckerberg’s appearance in court marked the first witness testimony, during which he stated that TikTok presents a formidable challenge to Meta. He indicated that the rise of this platform, owned by ByteDance, has not only created competition but has also marked a crucial turning point for Meta’s business strategy.
Notably, after ByteDance acquired Musical.ly in 2017 and integrated it into TikTok, Meta altered how it reported user statistics, shifting from individual user counts on Facebook to a broader ‘family of apps’ metric that includes its various platforms. The FTC’s allegations claim that Meta’s acquisitions, notably of Instagram and WhatsApp, were deliberate moves to establish a monopoly within the tech and social media industries. Should the FTC succeed, Meta may face the prospect of selling these significant assets.
Initial court testimonies, including Zuckerberg’s, have emphasized TikTok’s rapid ascent and the strategic responses from Meta. Beyond these competitive challenges, Zuckerberg is also being questioned about his previous acquisition attempts, including a somewhat speculative comment about Snapchat, where he mentioned that buying the platform could have accelerated its growth. Additionally, the trial has unveiled some unconventional ideas from Zuckerberg, such as the suggestion to periodically erase all users’ friends lists to address Facebook’s declining cultural relevance, and proposals to potentially spin off Instagram into a separate company, highlighting his belief in the benefits of corporate breakups.
