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COINTURK FINANCE > Business > FTC Scrutinizes Meta’s Social Media Strategy and Acquisitions
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FTC Scrutinizes Meta’s Social Media Strategy and Acquisitions

Overview

  • Meta reconsidered its friend network model in 2022.

  • FTC scrutinizes Meta's acquisitions of Instagram and WhatsApp.

  • The trial may impact major sectors of the social media market.

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Meta (NASDAQ:META) has reviewed strategic ideas to adjust its social network operations, as internal documents reveal a plan to overhaul user friend networks. The company explored resetting Facebook contacts to reinvigorate user engagement. Additional details and related commentary from industry experts now enrich the discussion around Meta’s evolving tactics.

Contents
Meta Adjusts Friend NetworksFTC Questions Acquisition Tactics

Recent independent reports corroborate that Meta’s experimental approach arose from concerns over declining cultural relevance. Other sources indicate that similar strategic concepts were examined in prior internal debates, highlighting recurring themes in Meta’s adaptation efforts.

Meta Adjusts Friend Networks

Internal communications disclosed that in 2022, Mark Zuckerberg proposed erasing users’ friend connections on Facebook to encourage rebuilding of networks.

“Option 1. Double down on Friending,” wrote Zuckerberg in an email to Meta executives, describing the potential reset process.

The proposal encountered resistance from senior leadership.

“I’m not sure Option #1 in your proposal would be viable given my understanding of how vital the friend use case is to Instagram,” responded Tom Alison, head of Facebook.

Zuckerberg later suggested shifting from a friend-based system to a follower-based model, reflecting broader internal debates.

FTC Questions Acquisition Tactics

Ongoing antitrust litigation initiated by the Federal Trade Commission addresses Meta’s key business moves, including its $1 billion acquisition of Instagram and $19 billion purchase of WhatsApp. Evidence presented in trial materials reveals a longstanding strategic drive to maintain market dominance through selective acquisitions. In related statements, Meta contends that the FTC’s analysis relies on an outdated conception of the social media market.

“The evidence will show what every 17-year-old in the world knows: Instagram competes with TikTok (and YouTube and X and many other apps),” Meta stated in a recent blog post.

Market researchers have noted the increasing financial importance of Instagram to Meta, with the platform contributing substantially to the company’s advertising revenue. The antitrust case, expected to last up to two months, could lead to significant consequences if Meta is ordered to divest key assets.

Analysts observe that Meta’s internal strategies and trial proceedings provide valuable insights into current competitive dynamics. Such discussions contribute practical context for stakeholders following antitrust matters and examining market shifts.

A detailed review of both internal communications and external market data indicates that regulatory scrutiny may prompt broader industry reassessments. Experts emphasize the need for companies and regulators to consider evolving competitive frameworks in digital markets.

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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

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