Mark Zuckerberg, CEO of Meta, suggested spinning off Instagram as a separate company in 2018, according to emails revealed in court on Tuesday. The revelation came as Zuckerberg testified in the Federal Trade Commission's (FTC) antitrust case against Meta, which is fighting a government lawsuit that could lead to the company being broken up.

The emails, dated 2018, show Zuckerberg discussing the possibility of spinning off Instagram and WhatsApp with his executives. He cited the potential for antitrust pressure, particularly if a Democratic president were to take office. "It's not too hard to imagine the calls increasing to break up the tech companies, and the next democratic president taking action to do so," Zuckerberg wrote.

Zuckerberg's suggestion was not taken lightly, as he acknowledged the business value of having Instagram and Facebook together. However, he also noted that "most companies actually perform better after they've been split up." The email was displayed in court as part of the FTC's case, which alleges that Meta illegally monopolized a subset of the social media market through its acquisitions of Instagram and WhatsApp.

The FTC is seeking to unwind Meta's acquisitions of Instagram and WhatsApp, which the agency claims were made to squash potential rivals and further the company's dominance. Meta argues that the case is "at war with the facts and at war with the law." The trial is ongoing, with Zuckerberg's testimony providing insight into the company's internal discussions around antitrust pressure.

The revelation of Zuckerberg's suggestion to spin off Instagram raises questions about the company's preparedness for potential antitrust action. While Meta is fighting the FTC's lawsuit, the emails suggest that the company was aware of the potential risks of antitrust pressure as early as 2018. The outcome of the trial could have significant implications for the tech industry, potentially paving the way for further antitrust action against large technology companies.

The case also highlights the shifting political landscape around tech regulation. In 2018, Zuckerberg was concerned about the potential for a Democratic president to take action against tech companies. Today, the Biden administration is taking a more aggressive stance on antitrust enforcement, with the FTC and other agencies pursuing cases against major tech companies.

As the trial continues, the tech industry will be watching closely for any developments that could impact the future of Meta and other large technology companies. The outcome of the case could have far-reaching implications for the industry, potentially shaping the course of antitrust policy for years to come.