During ongoing antitrust proceedings involving Meta Platforms Inc., CEO Mark Zuckerberg acknowledged that TikTok’s rapid rise had a significant impact on Meta’s growth and strategic direction.
Highlights
Testifying in a case brought by the U.S. Federal Trade Commission (FTC), Zuckerberg referred to TikTok as both a “top priority” and a “highly urgent” competitive challenge—highlighting the extent to which the platform reshaped the dynamics of the social media market.
The FTC’s case centers on Meta’s acquisitions of Instagram and WhatsApp and whether these moves were anticompetitive. A potential outcome of the trial could be a mandated divestiture of one or more of these platforms.
TikTok’s Rise and Its Impact on Meta
Zuckerberg stated that TikTok’s entry into the U.S. market coincided with a noticeable deceleration in Meta’s user growth.
He noted that the company began to experience mounting pressure in 2018 as TikTok surged in popularity. “Growth slowed down dramatically,” he said, citing internal metrics that confirmed a shift in user engagement trends.
TikTok’s acceleration followed ByteDance’s 2017 acquisition of Musical.ly, which was merged into TikTok in 2018 to form the app’s current version.
Around this same period, Meta—then operating under the Facebook brand—stopped publishing individual user metrics for its core platforms, opting instead to report numbers under a bundled “family of apps” model.
Some analysts have observed that this change coincided with a stagnation in Facebook’s own user growth.
Internal Recognition of Competitive Pressure
Internal communications from 2018, presented during the trial, showed that Meta had recognized TikTok as a serious competitive force early on.
Emails from that time revealed growing concern over user engagement patterns, prompting the company to elevate TikTok’s influence to a priority status in its internal strategy discussions.
Changing Dynamics in Social Media
In his testimony, Zuckerberg also reflected on the evolving nature of social media engagement. He stated that platforms are increasingly functioning as “discovery engines” rather than purely social networks.
“People can take that content to messaging engines,” he said, referring to how short-form and interest-based content has overtaken friend-based interactions as the primary driver of user activity.
This marks a shift from earlier models of social networking that relied heavily on personal connections and social graphs to retain user engagement.
Strategic Response and Development of Reels
In response to TikTok’s popularity, Meta launched Instagram Reels in 2020 in an attempt to establish a foothold in the short-form video space.
While Reels has gained traction, it has yet to match TikTok’s level of user engagement and cultural influence, underscoring the competitive challenges Meta continues to face in this content format.
Consideration of Instagram’s Independence
Zuckerberg also confirmed that there had been internal discussions as early as 2018 regarding the possibility of spinning off Instagram as a separate company.
These conversations were reportedly prompted by concerns about growing regulatory scrutiny and the implications of maintaining multiple major platforms under one corporate structure.
Reemphasis on Personal Connections
Despite shifting focus toward interest-based content, Meta has also introduced recent updates aimed at restoring its original emphasis on social interaction.
New features in Facebook, such as a redesigned Friends tab and enhancements to friend request visibility, suggest a partial return to the platform’s foundational approach. Zuckerberg referred to this effort as a “return to OG Facebook,” signaling a potential shift in direction for 2025.
Ongoing FTC Proceedings and Industry Implications
The FTC trial remains in its early stages but has already drawn significant attention due to its potential implications for the broader tech industry.
A ruling against Meta could reshape the company’s structure and influence its revenue model, particularly if it is required to separate platforms like Instagram or WhatsApp, which contribute significantly to its advertising income.
Zuckerberg’s testimony highlights not only how external competition has influenced Meta’s business decisions but also how the company has adjusted its internal strategy in response to shifting market conditions.
The case continues to spotlight broader questions about market power, platform dominance, and the evolving nature of user engagement across social media platforms.
