The revelation from Mark Zuckerberg's emails was a flashpoint during the congressional hearing on tech antitrust.
Ebersman replied that it typically made sense to acquire another company for one of three reasons: neutralizing a competitor, acquiring talent, or integrating products.“There are network effects around social products and a finite number of different social mechanics to invent. Once someone wins at a specific mechanic, it’s difficult for others to supplant them without doing something different,” the CEO wrote.
Zuckerberg disagreed. “I've always been clear that we viewed Instagram both as a competitor and as a complement to our services,” he said, adding that the FTC did not block the acquisition at the time. After Zuckerberg cited the FTC in his answer, Rep. David Cicilline of Rhode Island, the subcommittee chair, weighed in to say the FTC’s decision was irrelevant.
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