Zuckerberg feared Instagram would cannibalise Facebook, Meta emails show

Internal communications from Meta CEO Mark Zuckerberg have emerged as central evidence in the ongoing antitrust trial brought against Meta Platforms Inc. by the U.S. Federal Trade Commission (FTC). The messages, presented in court, reveal Zuckerberg's deep concerns over the risk that Instagram's growth could cannibalise Facebook, potentially leading to the "network collapse of the more engaging and profitable product."

The emails, dated May 2018 and addressed to senior Meta executives, illustrate Zuckerberg's fears that as more users joined Instagram, their engagement on Facebook dropped significantly. He described this phenomenon as a "hollowing out" of Facebook's usage and warned that pushing Instagram's growth could exacerbate the issue.

"We currently expect both Facebook and Instagram to be able to grow, but it seems likely... that will have significant negative effects on Facebook that we are not currently modelling," Zuckerberg wrote in a section titled "cannibalisation and network collapse."

He suggested that Meta should consider building deeper integrations between its apps to encourage cross-platform engagement, effectively creating a single user network. Proposed integrations included cross-app video creation tools and a unified voice and video calling system across Instagram, WhatsApp, and Messenger. Meta later implemented some of these features in 2020 before reversing course.

The email also revealed that Instagram's growth was primarily driven by its distribution through Facebook and use of Facebook's friend graph, causing Zuckerberg to question whether Meta was damaging its more profitable platform by boosting a less profitable one.

To mitigate this risk, Zuckerberg wrote that Meta had reduced promotional efforts for Instagram and called for features that would shift attention back to Facebook. He also proposed a rebranding strategy that would make Meta's ownership of Instagram and WhatsApp more visible to users, suggesting changes like adding 'by Facebook' in app branding.

Zuckerberg also floated the possibility of spinning out Instagram as a separate business. He suggested that doing so might help preserve Facebook's growth, allow better focus for Meta's teams, and retain Instagram’s co-founders Kevin Systrom and Mike Krieger. However, he acknowledged the sensitive nature of this proposal, noting that discussing it openly could risk demoralising Instagram's leadership.

In its antitrust case, the FTC argues that Meta's acquisitions of Instagram and WhatsApp were aimed at neutralising competition and maintaining a social networking monopoly. The agency is using the internal emails to demonstrate that Meta recognised Instagram as a direct threat to Facebook's dominance even after the acquisition.

Zuckerberg's reflections in the email also acknowledged that Meta might eventually be forced to spin out its acquisitions, noting a "non-trivial chance" that regulators could demand separation within 5 to 10 years. If the FTC wins its case, that possibility could become reality.

The trial remains ongoing as the FTC continues to present internal documentation in support of its claims.

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