Meta Argues WhatsApp Needed Acquation to Thrive

In its antitrust case against Meta, the US Federal Trade Commission is exploring an alternate reality where Facebook never acquired Instagram and WhatsApp. This world presents a thriving ecosystem of social media apps, with features that competed for users’ attention, creating opportunities for people to connect with friends and family.

WhatsApp co-founder Brian Acton testified on Tuesday as part of Meta’s defense, backing up claims that the acquisition helped WhatsApp grow and develop its features. Acton, who left Meta in 2017 after butting heads over ads, said he had no interest in building a feed into WhatsApp or changing it into an ad-supported business.

However, during cross-examination, Acton admitted that using Meta’s infrastructure might have helped WhatsApp skip some steps, but WhatsApp was already capable of finding technical support on its own. He testified that the company wanted to ensure Meta would continue operating the app even after they left.

Acton also stated that WhatsApp had added features like group messaging and location sharing before the acquisition, with plans to add more. The app’s growth rate remained consistent even after the deal, and Acton estimated it could have reached 1 billion monthly active users in about 18 months without Meta’s help.

The FTC has suggested that WhatsApp might have been an even better product without Meta’s stewardship, particularly in markets with stronger privacy protections. During his testimony, Acton acknowledged that he agreed to sell to Meta without securing a firm commitment against deploying ads and understood the offer price was based on plans to do so.

Source: https://www.theverge.com/antitrust/671831/meta-whatsapp-founder-brian-acton-testimony-antitrust-trial-ftc