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Chronicles

The story behind the story

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FTC and state AG antitrust complaints use dramatic language, bolstered by emails, to portray Zuckerberg as a villain who vowed to “crush” the competition

and requesting divestitures/breakups, among other forms of relief. Hopeful that it marks yet another step forward in the growing efforts to rehabilitate antitrust laws & recover antimonopoly. Alec Stapp / @alecstapp : Apr 2012: “Instagram has no business model at all. This is when all the tech bubble speak starts to sound reminiscent of the dot-com era, during which companies were wildly overvalued both on the stock market and among other companies, which overpaid for now-defunct companies” https://twitter.com/... @doctorow : Of course, they WERE anticompetitive. We know, because Zuck - who specializes in tripping over his own dick - sent out memos extolling the acquisitions' anticompetitive advantages, proving he hasn't learned a thing since he traded incriminating IMs about founding FB. 19/ https://twitter.com/... @moveon : This is going to be a long and messy legal fight. Here's an explainer to answer your questions. #Facebook https://www.nytimes.com/... Matthew Yglesias / @mattyglesias : Easy to forget that at the time the conventional wisdom was that Facebook was massively overpaying for Instagram in a clear sign of a tech bubble. I happen to remember because this is basically the only thing I've ever been right about. https://twitter.com/... Ny Ag / @newyorkstateag : For years, @Facebook has been illegally crushing competition and building a powerful monopoly. No company should have this much unchecked power, period. https://twitter.com/... Sar Haribhakti / @sarthakgh : Saying Instagram and Whatsapp were inevitable success stories is intellectually bankrupt at best or intentionally manipulative at worst https://twitter.com/... Mike Masnick / @mmasnick : It's funny how quickly people forget what the situation was like when Facebook actually bought Instagram https://twitter.com/... Ashley Carman / @ashleyrcarman : i make the case for instagram to be set free. let it loose from the branding nightmare that is facebook. zuck must def knows insta would thrive on its own and fb would wither without it, which i agree! https://www.theverge.com/... Drew Harwell / @drewharwell : Zuck understood something the rest of the world didn't: The power of a “social graph” that could shape behavior and neutralize competition. @ashk4n: “But it's not the innovation he's getting dinged for. It's that he was kind of an asshole in the way he wielded that knowledge” Roger McNamee / @moonalice : If you feel sympathy for FB about the antitrust case, read this ... then ask yourself if a functioning democracy — the US in 1966, for example — would allow this company to exist in its current form. https://twitter.com/... Tim Wu / @superwuster : Very proud of the Facebook antitrust complaint drafted by my former colleagues at the New York State @NewYorkStateAG — it obviously took extraordinary amounts of work. Who said the States don't matter? Have a read: https://ag.ny.gov/... @dhh : While focus is on Facebook, the ultimate remedy is to destroy the value of their monopolized access to user data: OUTLAW ADVERTISING TARGETED WITH PERSONAL DATA. It's this regime of advertising that has enabled the Facebook/Google duopoly on online ads to destroy everyone else. @dhh : Facebook and Google has destroyed the value in building a audience around high quality content, localized reach, or any specific niches, because their data troves have rendered even the worst content as good as the best, as long as the eyeball clock is ticking. Drew Harwell / @drewharwell : New: The government's antitrust case against Facebook seeks a villain in Mark Zuckerberg. Enforcers are casting the billionaire executive, once one of tech's most “darling superstars,” as a sneaky and rapacious brawler who vowed to crush the competition https://www.washingtonpost.com/ ...

Washington Post

Context & Ripple Effects

The complaints are the culmination of a paper trail built all year: emails surfaced by the House antitrust panel in July showed Facebook bought Instagram at least partly to neutralize a competitor, and an October memo from Facebook's own law firm previewed exactly how the company planned to fight a divestiture push. The FTC and state AGs are now converting that record into formal relief demands — breakup of Instagram and WhatsApp, not just conduct remedies.

The filings also revive a critique dating back to Zuckerberg's 2017 manifesto, which was read at the time as a bid to reframe Facebook's power as social mission. The difference now is evidentiary: regulators are quoting Zuckerberg against himself, and the case will test whether the 'acquire-or-crush' pattern can be litigated with existing law.

First-order effects

  • Facebook faces formal divestiture demands for Instagram and WhatsApp, with Zuckerberg's own emails — including the 'crush' language — positioned as central evidence of anticompetitive intent.
  • Zuckerberg personally becomes the face of the defense: his prior framing of Apple as one of Facebook's 'biggest competitors' will likely be deployed to argue Facebook operates in a contested market.

Second-order effects

  • Facebook executes the defense playbook its law firm drafted in October — attacking market definition and the notion that Instagram and WhatsApp were acquired to kill competition — making the case a direct test of that strategy.
  • Every large tech acquirer now prices in divestiture risk on past and future deals, as regulators demonstrate willingness to unwind consummated acquisitions rather than just block new ones.

Third-order effects

  • If courts prove unwilling to unwind decade-old mergers under current law — as the later dismissal of the FTC suit suggests was a real risk — the pressure shifts from litigation to Congress rewriting antitrust statutes for platform markets.
  • The case establishes a template for treating acquisition-of-nascent-rivals as the core monopolization theory in tech, shifting scrutiny from pricing harm to the elimination of competition itself.

The trend: US antitrust enforcement is moving from blocking future mergers to unwinding consummated ones, with platform founders' own internal communications becoming the primary evidence.

Discussion

  • @alecstapp Alec Stapp on x
    Apr 2012: “Instagram has no business model at all. This is when all the tech bubble speak starts to sound reminiscent of the dot-com era, during which companies were wildly overvalued both on the stock market and among other companies, which overpaid for now-defunct companies” ht…
  • @doctorow @doctorow on x
    Of course, they WERE anticompetitive. We know, because Zuck - who specializes in tripping over his own dick - sent out memos extolling the acquisitions' anticompetitive advantages, proving he hasn't learned a thing since he traded incriminating IMs about founding FB. 19/ https://…
  • @mattyglesias Matthew Yglesias on x
    Easy to forget that at the time the conventional wisdom was that Facebook was massively overpaying for Instagram in a clear sign of a tech bubble. I happen to remember because this is basically the only thing I've ever been right about. https://twitter.com/...
  • @newyorkstateag Ny Ag on x
    For years, @Facebook has been illegally crushing competition and building a powerful monopoly. No company should have this much unchecked power, period. https://twitter.com/...
  • @sarthakgh Sar Haribhakti on x
    Saying Instagram and Whatsapp were inevitable success stories is intellectually bankrupt at best or intentionally manipulative at worst https://twitter.com/...
  • @mmasnick Mike Masnick on x
    It's funny how quickly people forget what the situation was like when Facebook actually bought Instagram https://twitter.com/...
  • @ashleyrcarman Ashley Carman on x
    i make the case for instagram to be set free. let it loose from the branding nightmare that is facebook. zuck must def knows insta would thrive on its own and fb would wither without it, which i agree! https://www.theverge.com/...
  • @drewharwell Drew Harwell on x
    Zuck understood something the rest of the world didn't: The power of a “social graph” that could shape behavior and neutralize competition. @ashk4n: “But it's not the innovation he's getting dinged for. It's that he was kind of an asshole in the way he wielded that knowledge”
  • @moonalice Roger McNamee on x
    If you feel sympathy for FB about the antitrust case, read this ... then ask yourself if a functioning democracy — the US in 1966, for example — would allow this company to exist in its current form. https://twitter.com/...
  • @superwuster Tim Wu on x
    Very proud of the Facebook antitrust complaint drafted by my former colleagues at the New York State @NewYorkStateAG — it obviously took extraordinary amounts of work. Who said the States don't matter? Have a read: https://ag.ny.gov/...
  • @dhh @dhh on x
    While focus is on Facebook, the ultimate remedy is to destroy the value of their monopolized access to user data: OUTLAW ADVERTISING TARGETED WITH PERSONAL DATA. It's this regime of advertising that has enabled the Facebook/Google duopoly on online ads to destroy everyone else.
  • @dhh @dhh on x
    Facebook and Google has destroyed the value in building a audience around high quality content, localized reach, or any specific niches, because their data troves have rendered even the worst content as good as the best, as long as the eyeball clock is ticking.
  • @drewharwell Drew Harwell on x
    New: The government's antitrust case against Facebook seeks a villain in Mark Zuckerberg. Enforcers are casting the billionaire executive, once one of tech's most “darling superstars,” as a sneaky and rapacious brawler who vowed to crush the competition https://www.washingtonpost…