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        <title><![CDATA[Mark Zuckerberg grilled on possible Facebook-Instagram breakup]]></title>
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        <lastBuildDate>Wed, 29 Jul 2020 19:34:29 +0000</lastBuildDate>
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            <media:title type="html">Mark Zuckerberg grilled on possible Facebook-Instagram breakup</media:title>
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        <content:encoded><![CDATA[<p>House Democrats on Wednesday told Facebook CEO Mark Zuckerberg that he may have to spin off Instagram to comply with antitrust laws.</p><p>The Federal Trade Commission allowed Facebook to <strong>acquire Instagram</strong> in 2012, but House Judiciary Committee Chairman Jerrold Nadler (D-NY) said it wasn&#8217;t a closed case.</p><p>&#8220;Mr. Zuckerberg, mergers and acquisitions that buy off potential competitive threats violate the antitrust laws,&#8221; Nadler said. &#8220;In your own words, you purchased Instagram to neutralize a competitive threat. If this was an illegal merger at the time of the transaction, why shouldn&#8217;t Instagram now be broken off into a separate company?&#8221;</p><p>Nadler cited Zuckerberg&#8217;s remarks that the photo platform was a competitor, though the CEO insisted he only viewed Instagram as a photo-sharing competitor at the time, not as a potential rival for social networking.</p><p>&#8220;At the time, almost no one thought of them as a general social network,&#8221; Zuckerberg said.</p><p>But according to Nadler, &#8220;the documents you provided tell a very disturbing story. And that story is that Facebook saw Instagram as a powerful threat that could siphon business away from Facebook.&#8221;</p><p>Nadler said, &#8220;you told your CFO that though nascent, Instagram could be very disruptive to us. And in the weeks leading up to the deal, you described Instagram as a threat, saying that &#8216;Instagram can meaningfully hurt us without becoming a huge business&#8217;.&#8221;</p><p>The merger &#8220;should never have been permitted to happen, and it cannot happen again,&#8221; Nadler said.</p><p>Rep. David Cicilline (D-RI) agreed with Nadler, adding, &#8220;The failures of the FTC in 2012 of course do not alleviate the antitrust challenges that [Nadler] described.&#8221;</p><p>Zuckerberg said the criticism was unfairly premised on the present-day success of Instagram.</p><p>&#8220;It was not a guarantee that Instagram was going to succeed. The acquisition has done wildly well, largely because not just of the founders&#8217; talent, but because we invested heavily in building up the infrastructure and promoting it,&#8221; he said.</p>]]></content:encoded>
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