Facebook acquired Instagram in 2012 for $1 billion, but tensions between Mark Zuckerberg and the app’s founders persisted for years afterward. On Tuesday, Instagram’s former CEO and cofounder Kevin Systrom took the stand in Meta’s antitrust trial in Washington D.C and offered a firsthand account of how Zuckerberg viewed the photo-sharing app as a “threat” to Facebook.
Systrom, who ran Instagram until 2018, said that Zuckerberg slowed hiring and other investments into Instagram despite its success. Zuckerberg, Systrom testified, “believed we were a threat to their growth,” and as a result “was not investing” in the photo-sharing app, according to testimony reported by The New York Times. As The Times notes, Instagram had only a fraction of the employees as Facebook even after reaching 1 billion users. “As the founder of Facebook, he felt a lot of emotion around which one was better, meaning Instagram or Facebook,” Systrom reportedly said.
Tensions between Instagram’s founders and Zuckerberg over company resources have been previously reported, but Systrom’s testimony is the first time he’s publicly spoken in detail about the issues that ultimately led him to resign from the company. On the stand Tuesday, Systrom said that Zuckerberg “believed we were hurting Facebook’s growth,” according to Bloomberg.
Facebook’s acquisition of Instagram is central to the FTC’s case against Meta. The government has argued that Meta’s purchase of WhatsApp and Instagram were anticompetitive and that the social media company should be forced to divest the businesses. Systrom’s testimony comes a week after Zuckerberg took the stand and defended Meta’s $1 billion Instagram acquisition. However, a 2018 email from Zuckerberg that surfaced earlier in the trial showed that the Facebook founder was aware as early as 2018 that he could be forced to spin off the services into independent entities.
This article originally appeared on Engadget at https://www.engadget.com/social-media/instagrams-former-ceo-testifies-zuckerberg-thought-the-app-was-a-threat-to-facebook-202112282.html?src=rss
