The FTC alleges that Meta employed a deliberate "buy-or-bury" strategy when it faced competition from emerging platforms. According to the agency, after failing to compete with new mobile-first innovators, Facebook "illegally bought or buried them when their popularity became an existential threat"1. This strategy allegedly materialized when the company acquired Instagram for $1 billion in 2012 and WhatsApp for approximately $19 billion in 20142, both deals that were initially approved by regulators but are now central to the antitrust case.

During his testimony, Zuckerberg admitted that Facebook was "struggling with mobile users in the early 2010s" and that the company was "so far behind that we don't even understand how far behind we are" when it came to photo-sharing capabilities compared to Instagram3. Former FTC Chair Lina Khan claimed Meta "panicked" as smartphone use increased, seeing companies like Instagram and WhatsApp experiencing "astronomical growth" and subsequently resorting to acquiring them rather than competing fairly2. If the FTC prevails, Meta could be forced to divest these platforms, threatening its dominance in social media and potentially costing the company billions in advertising revenue, as Instagram alone is forecast to generate $32 billion in U.S. ad revenue in 20254.

In April 2012, Facebook made its largest acquisition at that time, purchasing Instagram for approximately $1 billion in cash and stock just two years after the photo-sharing app's founding1. The deal came shortly after Instagram had closed a $50 million funding round that valued the company at about $500 million, effectively doubling investors' money in just one week1. With only a handful of employees at the time, Instagram had already amassed around 30 million iPhone users and had just released its Android version1.

The acquisition has become central to the FTC's current antitrust case, with prosecutors highlighting a 2008 email where Zuckerberg reportedly stated it was "better to buy than compete"2. During his testimony, Zuckerberg was confronted with emails from 2011 noting Instagram's rapid growth and another from 2012 lamenting that Facebook was "taking too long to catch up" to Instagram3. While the FTC characterizes the purchase as a tactic to neutralize rising competition, Zuckerberg has defended the acquisition, claiming it was motivated by Instagram's camera technology rather than eliminating a social network competitor34.

In the ongoing antitrust trial, the FTC specifically alleges that Meta's $19 billion acquisition of WhatsApp in 2014 was a strategic move to neutralize a potential competitor in the personal social networking space.12 With approximately 450 million users at the time of purchase, WhatsApp represented a significant threat to Meta's dominance as users were shifting toward more private messaging.13 The FTC's case argues that this acquisition, along with Instagram, was part of Meta's pattern of buying emerging platforms that could challenge its market position rather than competing with them directly.4

Meta's defense counters that WhatsApp operates in a highly competitive messaging market that includes Apple's iMessage, Snapchat, and various other platforms.25 Zuckerberg testified that Meta's platforms have evolved beyond just friends and family sharing toward "a broad discovery-entertainment space," challenging the FTC's narrow market definition that excludes competitors like TikTok and YouTube.65 If the court rules in the FTC's favor, Meta could be forced to divest WhatsApp, potentially marking the largest corporate breakup since AT&T was unwound four decades ago.75