Saudi Press

Saudi Arabia and the world
Wednesday, Nov 12, 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

Saudi Press
0:00
0:00
Close
Trump Unveils Middle East Reset: Syria Re-engaged, Saudi Ties Amplified
Saudi Arabia to Build Future Cities Designed with Tourists in Mind, Says Tourism Minister
Saudi Arabia Advances Regulated Stablecoin Plans with Global Crypto Exchange Support
Saudi Arabia Maintains Palestinian State Condition Ahead of Possible Israel Ties
Chinese Steel Exports Surge 41% to Saudi Arabia as Mills Pivot Amid Global Trade Curbs
Saudi Arabia’s Biban Forum 2025 Secures Over US$10 Billion in Deals Amid Global SME Drive
Saudi Arabia Sets Pre-Conditions for Israel Normalisation Ahead of Trump Visit
MrBeast’s ‘Beast Land’ Arrives in Riyadh as Part of Riyadh Season 2025
Cristiano Ronaldo Asserts Saudi Pro League Outperforms Ligue 1 Amid Scoring Feats
AI Researchers Claim Human-Level General Intelligence Is Already Here
Saudi Arabia Pauses Major Stretch of ‘The Line’ Megacity Amid Budget Re-Prioritisation
Saudi Arabia Launches Instant e-Visa Platform for Over 60 Countries
Dick Cheney, Former U.S. Vice President, Dies at 84
Saudi Crown Prince to Visit Trump at White House on November Eighteenth
Trump Predicts Saudi Arabia Will Normalise with Israel Ahead of 18 November Riyadh Visit
Entrepreneurial Momentum in Saudi Arabia Shines at Riyadh Forward 2025 Summit
Saudi Arabia to Host First-Ever International WrestleMania in 2027
Saudi Arabia to Host New ATP Masters Tournament from 2028
Trump Doubts Saudi Demand for Palestinian State Before Israel Normalisation
Viral ‘Sky Stadium’ for Saudi Arabia’s 2034 World Cup Debunked as AI-Generated
Deal Between Saudi Arabia and Israel ‘Virtually Impossible’ This Year, Kingdom Insider Says
Saudi Crown Prince to Visit Washington While Israel Recognition Remains Off-Table
Saudi Arabia Poised to Channel Billions into Syria’s Reconstruction as U.S. Sanctions Linger
Smotrich’s ‘Camels’ Remark Tests Saudi–Israel Normalisation Efforts
Saudi Arabia and Qatar Gain Structural Edge in Asian World Cup Qualification
Israeli Energy Minister Delays $35 Billion Gas Export Agreement with Egypt
Fincantieri and Saudi Arabia Agree to Build Advanced Maritime Ecosystem in Kingdom
Saudi Arabia’s HUMAIN Accelerates AI Ambitions Through Major Partnerships and Infrastructure Push
IOC and Saudi Arabia End Ambitious 12-Year Esports Games Partnership
CSL Seqirus Signs Saudi Arabia Pact to Provide Cell-Based Flu Vaccines and Build Local Production
Qualcomm and Saudi Arabia’s HUMAIN Team Up to Deploy 200 MW AI Infrastructure
Saudi Arabia’s Economy Expands Five Percent in Third Quarter Amid Oil Output Surge
China’s Vice President Han Zheng Meets Saudi Crown Prince as Trade Concerns Loom
Saudi Arabia Unveils Vision for First-Ever "Sky Stadium" Suspended Over Desert Floor
Francis Ford Coppola Auctions Luxury Watches After Self-Financed Film Flop
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
EU Deploys New Biometric Entry/Exit System: What Non-EU Travelers Must Know
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
China’s lesson for the US: it takes more than chips to win the AI race
Israel and Hamas Agree to First Phase of Trump-Brokered Gaza Truce, Hostages to Be Freed
The Davos Set in Decline: Why the World Economic Forum’s Power Must Be Challenged
Wave of Complaints Against Apple Over iPhone 17 Pro’s Scratch Sensitivity
Syria Holds First Elections Since Fall of Assad
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
×