Zuckerberg told investors the Instagram deal isn't an antitrust issue

Zuckerberg told investors the Instagram deal isn't an antitrust issue 1
In brief: Zuckerberg’s latest argument about Facebook’s controversial acquisitions is that Instagram achieved its remarkable success because the parent company poured its resources in to make it happen. However, we’ll have to wait and see if regulators agree with his assessment.

Facebook CEO Mark Zuckerberg recently held an investors call where he tried to push back against critics and lawmakers who believe the company’s big ticket acquisitions have been a threat to competition in the social media space. And while it shouldn’t be a surprise, Facebook has posted impressive financial results for the latest quarter, sending shares soaring once again.

The executive argues that at the time of the 2012 deal, there was no guarantee that Instagram would grow to foster the attention of over one billion users every single month. He noted that Facebook didn’t see it as a “true competitor,” as it was one of many other companies operating in the social media space and only had a relatively small, 30 million user base.

According to Zuckerberg, the FTC was well aware of these details when it greenlighted the Instagram acquisition. He noted “I set a goal that we hoped that one day Instagram might reach 100 million people, and I know that that seems quaint today compared to how well it’s done, but remember that a lot of the other services that were Instagram peers and were growing quickly at the time.”

To put things in context, Zuckerberg argues that companies like Tumblr, Twitter and Snap that struggle to make a profit are healthy competition for Facebook. Or he may be referring to Google+, which proved unsuccesful despite the search giants’ efforts to scale it up. It can, however, be argued that YouTube is also a competitor, but it faces financial challenges of its own. Chinese social giants like WeChat, Weibo, and QQ don’t even compete with Facebook, which is blocked in the country.

But if there’s any indication that the company is about to be battered by regulators for using anticompetitive practices to achieve its dominance, look no further than the exodus of partners from one of its most ambitious project yet: Libra, a global cryptocurrency that looks increasingly unlikely to launch as planned.

Meanwhile, Facebook has been unifying the underlying infrastructure of its social media and messaging properties, Instagram included. Zuckerberg said during internal meetings he is prepared to fight regulators who want to break up the company into smaller pieces. So far he’s had a “constructive meeting” with Trump with respect to internet regulation, but he’ll have a much harder time convincing lawmakers that Facebook’s acquisition of Instagram is not an antitrust issue.

Investors don’t seem to be too concerned with Facebook’s antitrust battles, however. When the FTC hit the company with a $5 billion fine for its privacy mishaps, its valuation shot up by $10 billion. In the meantime, Congress is asking Facebook and other tech giants many questions about how they reached their dominant positions in their respective markets, in a broad antitrust probe that could get ugly in the near future.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Crypto Scams

Cryptosoft
Cryptosoft Trading Bot Review
June 27, 2022
The Largest Crypto Scams Of 2022 (So Far)
The Largest Crypto Scams Of 2022 (So Far)
June 14, 2022
Scammers
How Do Scammers Entice Their Prey?
May 10, 2022
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
April 23, 2022
Prove
Joon Pak Head of Crypto at Prove talks to Us about Crypto Fraud And More
April 11, 2022

Automated trading with HaasBot Crypto Trading Bots

Blockchain/Cryptocurrency Questions and Answers

Russia
Roundtable Interview-What is the Effect of The Russia-Ukraine War on Cryptocurrency Prices?
March 4, 2022
GamStop
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
Cryptocurrency
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
Ethereum
The Unconventional Guide to Ethereum
October 28, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin21,103 1.03 % 1.64 % 2.26 %
Ethereum1,223.7 1.36 % 0.64 % 8.09 %
Tether1.002 0.07 % 0.02 % 0.18 %
USD Coin1.003 0.08 % 0.12 % 0.03 %
BNB240.07 0.99 % 0.24 % 10.53 %
Binance USD1.006 0.35 % 0.42 % 0.16 %
XRP0.3536 0.80 % 3.17 % 9.10 %
Cardano0.4926 0.85 % 2.72 % 0.04 %
Solana39.18 1.32 % 4.71 % 10.45 %
Dogecoin0.07279 1.44 % 6.08 % 20.80 %

bitcoin
Bitcoin (BTC) $ 20,885.00
ethereum
Ethereum (ETH) $ 1,205.56
tether
Tether (USDT) $ 1.00
usd-coin
USD Coin (USDC) $ 1.00
bnb
BNB (BNB) $ 237.70
binance-usd
Binance USD (BUSD) $ 1.00
xrp
XRP (XRP) $ 0.350179
cardano
Cardano (ADA) $ 0.487991
solana
Solana (SOL) $ 38.53
dogecoin
Dogecoin (DOGE) $ 0.07143