London Daily

Focus on the big picture.
Thursday, Dec 04, 2025

Facebook Bought Instagram To Neutralize A Competitor, Emails Show

Facebook Bought Instagram To Neutralize A Competitor, Emails Show

The revelation from Mark Zuckerberg's emails was a flashpoint during the congressional hearing on tech antitrust.

When Facebook CEO Mark Zuckerberg was considering buying Instagram in 2012, he told his company’s CFO that it would neutralize a competitor, according to emails obtained by the House Antitrust Subcommittee and released Wednesday.

The emails, which were first published by the Verge, were cited by House Judiciary Chair Rep. Jerry Nadler while questioning Zuckerberg at a Capitol Hill hearing into antitrust.

Along with Zuckerberg, the top executives of Amazon, Google, and Apple appeared via videoconference to be questioned about the market power of and consumer harm caused by their companies. Republican members of Congress also pressed Zuckerberg and Google CEO Sundar Pichai about alleged anti-conservative bias on their platforms.

The hearing came after the subcommittee spent roughly a year investigating possible antitrust violations by the big technology platforms. As part of the process, the committee gathered records from the companies, including the emails sent between Zuckerberg and Facebook’s former CFO, David Ebersman.

In an email sent in late February 2012, Zuckerberg told Ebersman he was thinking about how much Facebook should pay to acquire smaller competitors like Instagram and Path, which were then upstart social networks. Facebook would eventually acquire Instagram in April that year for $1 billion.

“These businesses are nascent but the networks are established, the brands are already meaningful, and if they grow to a large scale they could be very disruptive to us,” Zuckerberg wrote.


Ebersman replied that it typically made sense to acquire another company for one of three reasons: neutralizing a competitor, acquiring talent, or integrating products.

Zuckerberg said it was a combination of the first and third reasons.

“There are network effects around social products and a finite number of different social mechanics to invent. Once someone wins at a specific mechanic, it’s difficult for others to supplant them without doing something different,” the CEO wrote.

He added that acquiring one of these companies would buy Facebook time to ward off other competitive threats.

“Even if some new competitors springs up [sic], buying Instagram, Path, Foursquare, etc now will give us a year or more to integrate their dynamics before anyone can get close to their scale again,” he added.

Zuckerberg emailed Ebersman again 45 minutes later to walk back talk of “neutralizing a competitor.”

“I didn’t mean to imply that we’d be buying them to prevent them from competing with us in any way,” he wrote.

But Nadler seized upon the email exchange as evidence of anticompetitive behavior.

Facebook saw Instagram as a threat that could potentially siphon business away from Facebook. So instead of competing with it, Facebook bought it,” he said. “This is exactly the type of acquisition the antitrust laws were designed to prevent. It should never have been permitted to happen and cannot happen again.”

Zuckerberg disagreed. “I've always been clear that we viewed Instagram both as a competitor and as a complement to our services,” he said, adding that the FTC did not block the acquisition at the time.

“Congressman, I think the FTC had all these documents and reviewed this and unanimously voted at the time not to challenge the acquisition. I think it looks obvious Instagram would have reached the scale it has today, but at the time it was far from obvious.”

After Zuckerberg cited the FTC in his answer, Rep. David Cicilline of Rhode Island, the subcommittee chair, weighed in to say the FTC’s decision was irrelevant.

“I would remind the witness that the failures of the FTC in 2012, of course, do not alleviate the antitrust challenges the chairman [Nadler] described,” he said.

House Democrats released additional internal Facebook communications about the Instagram acquisition, including one from late January 2012 in which an unnamed employee said “Instagram is eating our lunch.”

Months later, on the day its acquisition of Instagram was made public, Zuckerberg wrote to the employee to acknowledge that “Instagram was our threat.”

“You were basically right,” he said. “One thing about startups, though, is you can often acquire them.”


Aside from the previously unreleased Facebook emails about Instagram, the hearing did not provide many new revelations. Democratic members of the subcommittee questioned the CEOs about their products and businesses, while many Republicans pressed them on alleged anti-conservative censorship.

In one exchange, Rep. Frank Sensenbrenner of Wisconsin, the ranking Republican on the subcommittee, asked Zuckerberg about action taken against Donald Trump Jr.’s account after he had shared a video filled with potentially harmful falsehoods about the coronavirus.

Zuckerberg pointed out that the account and incident in question happened on Twitter, not on any of Facebook’s products. "So it's hard for me to speak to that,” he said.

Newsletter

Related Articles

0:00
0:00
Close
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
UK Budget’s New EV Mileage Tax Undercuts Case for Plug-In Hybrids
UK Government Launches National Inquiry into ‘Grooming Gangs’ After US Warning and Rising Public Outcry
Taylor Swift Extends U.K. Chart Reign as ‘The Fate of Ophelia’ Hits Six Weeks at No. 1
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
×