Instagram would have succeeded without Facebook's $1B takeover, co-founder testifies

Core Viewpoint - Instagram's co-founder Kevin Systrom testified that the platform would have thrived independently of Facebook's acquisition, highlighting its pre-existing user growth and potential for feature development [1][2]. Group 1: Instagram's Growth and Independence - Systrom stated that Instagram was experiencing rapid user growth before Mark Zuckerberg's acquisition offer [2]. - He expressed confidence that Instagram could have developed features like video and private messaging without Facebook's assistance [2]. Group 2: Meta's Strategy and Response - Systrom indicated that Zuckerberg viewed Instagram's success as a "threat" to Facebook, leading to a lack of resources for Instagram's data privacy improvements post-Cambridge Analytica scandal [3][5]. - The testimony supports the FTC's claim that Meta employed a "buy or bury" strategy to neutralize emerging competitors like Instagram and WhatsApp [5]. Group 3: Resource Allocation and Management - In a 2017 email, Systrom expressed frustration over Instagram not receiving additional employees despite a companywide push to enhance video offerings [6]. - He noted a stark contrast between his efforts to make Instagram successful and the lack of resources allocated to the platform [6]. Group 4: Meta's Defense - Meta's legal representatives argued that the acquisition of Instagram was beneficial for its growth, claiming that Instagram had only 2% of its current user base, 13 employees, and no revenue at the time of acquisition [11]. - Meta's chief legal officer stated that many features central to Instagram were developed using Meta's infrastructure after the acquisition [11].