At monopoly trial, Zuckerberg redefined social media as texting with friends
“The magic of friends has fallen away”
Mark Zuckerberg played up TikTok rivalry at monopoly trial, but judge may not buy it.
The Meta monopoly trial has raised a question that Meta hopes the Federal Trade Commission (FTC) can’t effectively answer: How important is it to use social media to connect with friends and family today?
Connecting with friends was, of course, Facebook’s primary use case as it became the rare social network to hit 1 billion users—not by being acquired by a Big Tech company but based on the strength of its clean interface and the network effects that kept users locked in simply because all the important people in their life chose to be there.
According to the FTC, Meta took advantage of Facebook’s early popularity, and it has since bought out rivals and otherwise cornered the market on personal social networks. Only Snapchat and MeWe (a privacy-focused Facebook alternative) are competitors to Meta platforms, the FTC argues, and social networks like TikTok or YouTube aren’t interchangeable, because those aren’t destinations focused on connecting friends and family.
For Meta CEO Mark Zuckerberg, however, those early days of Facebook bringing old friends back together are apparently over. He took the stand this week to testify that the FTC’s market definition ignores the reality that Meta contends with today, where “the amount that people are sharing with friends on Facebook, especially, has been declining,” CNN reported.
“Even the amount of new friends that people add … I think has been declining,” Zuckerberg said, although he did not indicate how steep the decline is. “I don’t know the exact numbers,” Zuckerberg admitted. Meta’s former chief operating officer, Sheryl Sandberg, also took the stand and reportedly testified that while she was at Meta, “friends and family sharing went way down over time . . . If you have a strategy of targeting friends and family, you’d have serious revenue issues.”
In particular, TikTok’s explosive popularity has shifted the dynamics of social media today, Zuckerberg suggested. For many users, “apps now serve primarily as discovery engines,” Zuckerberg testified, and social interactions increasingly come from sharing fun creator content in private messages, rather than through engaging with a friend or family member’s posts.
That’s why Meta added Reels, Zuckerberg testified, and, more recently, TikTok Shop-like functionality. To stay relevant, Meta had to make its platforms more like TikTok, investing heavily in its discovery algorithm, and even willing to irk loyal Instagram users by turning their perfectly curated square grids into rectangles, Wired noted in a piece probing Meta’s efforts to lure TikTok users to Instagram.
There was seemingly no bridge too far, because Zuckerberg said, “TikTok is still bigger than either Facebook or Instagram, and I don’t like it when our competitors do better than us.” And since Meta has no interest in buying TikTok, due to fears of basing business in China, Big Tech on Trial reported, Meta’s only choice was to TikTok-ify its apps to avoid a mass exodus after Facebook users started declining for the first time in 2022. Committing to this future, the next year, Meta doubled the amount of force-fed filler in Instagram feeds.
Right now, Meta is positioning TikTok as one of Meta’s biggest competitors, with Meta supposedly flagging it a “top priority” and “highly urgent” competitive threat as early as 2018, Zuckerberg said. Further, Zuckerberg testified that while TikTok’s popularity grew, Meta’s “growth slowed down dramatically,” TechCrunch reported. And perhaps most persuasively, when TikTok briefly went dark earlier this year, some TikTokers moved to Instagram, Meta argued, suggesting that some users consider the platforms interchangeable.
If Meta can convince the court that the FTC’s market definition is wrong and that TikTok is Meta’s biggest rival, then Meta’s market share drops below monopolist standards, “undercutting” the FTC’s case, Big Tech on Trial reported.
But are Facebook and Instagram substitutes for TikTok?
Although Meta paints the picture that TikTok users naturally gravitated to Instagram during the TikTok outage, it’s clear that Meta advertised heavily to move them in that direction. There was even a conspiracy theory that Meta had bought TikTok in the hours before TikTok went down, Wired reported, as users noticed Meta banners encouraging them to link their TikTok accounts to Meta platforms. However, even the reported Meta ad blitz seemingly didn’t sway that many TikTok users, as Sensor Tower data at the time apparently indicated that “Instagram and Facebook appeared to receive only a modest increase in daily active users and downloads” during the TikTok outage, Wired reported.
Perhaps a more interesting question that the court may entertain is not where TikTok users go when TikTok is down, but where Instagram or Facebook users turn if they no longer want to use those platforms. If the FTC can argue that people seeking a destination to connect with friends or family wouldn’t substitute TikTok for that purpose, their market definition might fly.
Kenneth Dintzer, a partner at Crowell & Moring and the former lead attorney in the DOJ’s winning Google search monopoly case, told Ars that the chief judge in the case, James Boasberg, made clear at summary judgment that acknowledging Meta’s rivalry with TikTok “doesn’t really answer the question about friends and family.”
So even though Zuckerberg was “pretty persuasive,” his testimony on TikTok may not move the judge much. However, there was one exchange at the trial where Boasberg asked, “How much does it matter if friends are on a particular platform, if friends can share outside of it?” Zuckerberg praised this as a “good question” and “explained that it doesn’t matter much because people can fluidly share across platforms, using each one for its value as a ‘discovery engine,'” Big Tech on Trial reported.
Dintzer noted that Zuckerberg seemed to attempt to float a different theory explaining why TikTok was a valid rival—curiously attempting to redefine “social media” to overcome the judge’s skepticism in considering TikTok a true Meta rival.
Zuckerberg’s theory, Dintzer said, suggests that “if I open up something on TikTok or on YouTube, and I send it to a friend, that is social media.”
But that broad definition could be problematic, since it would suggest that all texting and messaging are social media, Dintzer said.
“That didn’t seem particularly persuasive,” Dintzer said. Although that kind of social sharing is “certainly something that people enjoy,” it still “doesn’t seem to be quite the same thing as posting something on Facebook for your friends and family.”
Another wrinkle that may scramble Meta’s defense is that Meta has publicly declared that its priority is to bring back “OG Facebook” and refresh how friends and family connect on its platforms. Just today, Instagram chief Adam Mosseri announced a new Instagram feature called “blend” that strives to connect friends and family through sharing access to their unique discovery algorithms.
Those initiatives seem like a strategy that fully relies on Meta’s core use case of connecting friends and family (and network effects that Zuckerberg downplayed) to propel engagement that could spike revenue. However, that goal could invite scrutiny, perhaps signaling to the court that Meta still benefits from the alleged monopoly in personal social networking and will only continue locking in users seeking to connect with friends and family.
“The magic of friends has fallen away,” Meta’s blog said, which, despite seeming at odds, could serve as both a tagline for its new “Friends” tab on Facebook and the headline of its defense so far in the monopoly trial.
Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.
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