Saudi Press

Saudi Arabia and the world
Saturday, Feb 21, 2026

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

Saudi Press
0:00
0:00
Close
Concerns Mount Over Potential Saudi Uranium Enrichment in Prospective US Nuclear Accord
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
Investability Emerges as the Defining Test of Saudi Arabia’s Next Market Phase
Saudi Arabia’s Packaging Market Accelerates as Sustainability and E-Commerce Drive Transformation
Saudi Arabia’s Strategic Minerals Drive Offers Lessons for Europe’s Supply Chain Ambitions
Saudi Arabia Unveils $32 Billion Push Into Theme Parks and Global Entertainment
Saudi Crude Exports to India Climb Sharply, Closing Gap With Russia
Saudi Arabia’s Halal Cosmetics Market Expands as Faith and Ethical Beauty Drive Growth
United Kingdom Denies U.S. Access to Military Base for Potential Iran Strike
ImmunityBio Secures Saudi Partnerships to Launch Flagship Cancer Therapy
Türkiye and Saudi Arabia Launch Expanded Renewable Energy Partnership
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
UK Intensifies Efforts to Secure Saudi Investment in Next-Generation Fighter Jet Programme
Saudi Arabia Tops Middle East Green Building Rankings with Record Growth in 2025
Qatar and Saudi Arabia Each Commit One Billion Dollars to President Trump’s ‘Board of Peace’ Initiative
Ramadan 2026 Prayer Times Set as Fasting Begins in Saudi Arabia and Egypt Announces Dates
Saudi Arabia Launches Ramadan 2026 Hotel Campaign to Boost Religious and Leisure Tourism
Saudi Arabia Seeks Reroute of Greece-Bound Fibre-Optic Cable Through Syria Instead of Israel
Saudi-Backed Scopely Acquires Majority Stake in Turkey’s Loom Games to Expand Mobile Portfolio
Zodiac Milpro Launches Zid Marine Joint Venture in Saudi Arabia to Expand Regional Shipbuilding
Saudi Arabia Reaffirms Reform Path Amid Claims of Ideological Reversal
Calls Grow for Saudi Arabia and UAE to Settle Differences Through Direct Dialogue
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
British couple sentenced to 10 years in Iran for espionage
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
Prince William Holds Talks with Crown Prince Mohammed bin Salman During Saudi Visit
Saudi Arabia’s Humain Commits $3 Billion Investment to Elon Musk’s xAI
SCOPA Executive Unveils Ambitious Relaunch Strategy for Saudi Production Company
Saudi Arabia Sees Rise in Business Visa Rejections Amid Tighter Compliance Checks
Saudi PIF Transfers Take-Two Stake to Savvy Games Group in Strategic Gaming Push
Jimmy Carr Says He ‘Loved’ Saudi Arabia Show Amid Debate Over Performing in the Kingdom
Sotheby’s ‘Origins II’ Auction Signals Saudi Collectors’ Shift Toward Cultural Legacy
EY and Microsoft Deepen Saudi Arabia Partnership with Launch of EY Studio+
Google Pay Launches Support for Mastercard Cards in Saudi Arabia
Saudi Arabia Bolsters Maritime Surveillance Fleet with Four C-27J Patrol Aircraft
Kazakhstan and Saudi Arabia Deepen Strategic Partnership with New Investment and Energy Agreements
Saudi Crown Prince Receives Written Message from Kazakhstan’s President Amid Expanding Strategic Ties
ImmunityBio Shares Rise After Saudi Arabia BCG Manufacturing Update Spurs Investor Optimism
Global Music Star Tyla Confirmed as Headliner at 2026 Saudi Arabian Grand Prix Entertainment Lineup
Somalia and Saudi Arabia Forge New Military Partnership Amid Regional Power Shifts
Saudi Arabia and Several Nations Criticize Israeli West Bank Land Measures as Diplomatic Tensions Rise
Saudi Public Investment Fund Transfers Stake in Take-Two Interactive as Portfolio Strategy Evolves
Saudi Arabia’s Flagship Defense Expo Highlights Industrial Ambitions and Expanding Arms Portfolio
Strategic Divergence Deepens as Saudi Arabia and UAE Recalibrate Gulf Partnership
Saudi Arabia Confirms Start of Ramadan as Crescent Moon Sighted, While Other Nations Begin a Day Later
Rubio Calls for Sweeping U.N. Reform, Saying It Has Failed to End Wars in Gaza and Ukraine
10,000 Condoms Distributed at Winter Olympics 2026 Athlete Village Depleted Within 72 Hours
Prince William Meets Saudi Crown Prince as Epstein-Andrew Fallout Casts Shadow
×