At Trial, Instagram Co-founder Says Zuckerberg Withheld Resources Over 'Threat' Fears (nytimes.com)
- Reference: 0177090743
- News link: https://tech.slashdot.org/story/25/04/22/1711254/at-trial-instagram-co-founder-says-zuckerberg-withheld-resources-over-threat-fears
- Source link: https://www.nytimes.com/2025/04/22/technology/meta-trial-instagram-kevin-systrom.html
> Kevin Systrom, the co-founder of Instagram, testified on Tuesday in a landmark federal antitrust trial that he left Meta in 2018 because his [1]company was denied resources . The government has argued that Meta purchased Instagram in 2012 as part of a "buy-or-bury strategy" to illegally cement its social media monopoly by killing off its rivals. Last week, current and former Meta executives testified that the social media giant, formerly known as Facebook, used its deep pockets to invest in Instagram after its purchase.
>
> In testimony at the U.S. District Court of the District of Columbia, Mr. Systrom painted a different picture, saying he left Meta because Mark Zuckerberg, the chief executive, wasn't investing enough. At that time, Instagram had grown to 1 billion users, about 40 percent of Facebook's size, yet the photo-sharing app had only 1,000 employees compared to 35,000 employees at Facebook, he said. "We were by far the fastest growing team. We produced the most revenue and relative to what we should have been at the time, I felt like we should have been much larger," said Mr. Systrom, who is expected to testify for six hours.
>
> Mr. Systrom said he found the decisions baffling. When asked by an F.T.C. lawyer why Mr. Zuckerberg might have decided to give Instagram fewer resources, Mr. Systrom said it was a consistent pattern during his tenure at Meta. "Mark was not investing in Instagram because he believed we were a threat to their growth," he said, referring to Mr. Zuckerberg's prioritization of Facebook.
[1] https://www.nytimes.com/2025/04/22/technology/meta-trial-instagram-kevin-systrom.html
Hold up a sec (Score:2)
So the complaint is that a massive company buys a smaller company and then proceeds to manage it poorly ?
This must be a first. That never happens.
Re:Hold up a sec [for solutions?] (Score:3)
Mod parent funny, but I think there is a deeper problem in the anti-freedom pro-greedom economic system that supports and even encourages any mergers that reduce competition. Slightly unusual in that this was a preemptive strike whereas the majority of anti-competitive mergers are in fire sales to obtain the loser's customer base.
I still think there is a solution through pro-freedom anti-monopoly tax policy. Basic idea would be a progressive tax on profits linked to dominance of any niche. Current version w
So what? (Score:1, Troll)
Why shouldn't the CEO of a company be allowed to make strategic decisions they think are correct for the company? What's illegal here? Let's say you own a bakery, and the pastries keep getting sold out, but you decide to put all your resources into cake making equipment and workers instead. It's not illegal for you to do that, as the owner and decision-maker it's literally your business as to what you want to do.
Did he buy Instagram to bury it? I don't know, don't care. It's his business he owns it. I'll ha
Re: (Score:3)
He is unless he is creating an illegal monopoly. If he is, then the courts can split up the company.
Re: (Score:1)
Thing is, It's not actually his company. The company is publicly traded he loses that authority and all those rights because it's now a public company and at that point the expectation is that the company will work for the public interest. In return for having a public stock price, you sign legally obligating contracts, and give that up.
So? (Score:2)
Stop bitching about not getting enough resources, you sold it to fill your own pocket as the offer was just too good to pass on. Unless it was written in the contract, and I'm pretty sure there wasn't anything in there, you have no leg to stand on. If Facebook bought it to shut it down, it is their prerogative, but they haven't, they still invest money in the platform, even though it doesn't add anything to the pool. I really think these persons are just big hypocrites, going for the big money and then bit
"buy-or-bury strategy" (Score:2)
Another way of saying "catch and kill" for you Trumpkins. [1]https://www.foxnews.com/video/... [foxnews.com]
[1] https://www.foxnews.com/video/6323968517112
Well I'm just shocked (Score:2)
This is my shocked face : /