Mark Zuckerberg, CEO of Meta, expressed concerns in a 2018 internal email that Instagram's growth could cannibalize Facebook, potentially leading to a "network collapse" of the more engaging and profitable product. The email, surfaced as part of the Meta antitrust trial, reveals Zuckerberg's worries about the potential consequences of Instagram's success on Facebook's user engagement and revenue.

In the email, dated May 2018, Zuckerberg told other Meta executives, including Chris Cox, Sheryl Sandberg, Mike Schroepfer, Javier Olivan, and David Wehner, that internal data showed that when users joined Instagram, their Facebook engagement "declines significantly." He warned that if Instagram continued to grow, it could lead to a "hollowing out" of Facebook usage, ultimately resulting in a "network collapse" of the more profitable product.

Zuckerberg proposed several solutions to mitigate this risk, including building more bridges between Meta's apps to make them function as a single network. He suggested that Instagram should introduce new integrations that would tip the balance back towards Facebook, such as making it easier for video creators with large audiences to engage across both apps. Additionally, he wanted to combine the voice and video calling networks across WhatsApp, Messenger, and Instagram to become a single network.

The email also reveals Zuckerberg's concerns about the difficulties of building new products and services within Instagram and WhatsApp due to their founder leadership. He lamented that management couldn't openly discuss its concerns about Instagram without demoralizing the team and preventing the company from retaining Instagram co-founders Kevin Systrom and Mike Krieger.

Notably, Zuckerberg also suggested that spinning out Instagram as a separate business could be an alternative strategy to preserve Facebook's growth, focus Meta's teams, and allow the company to retain Systrom. This is ironic, given that the U.S. Federal Trade Commission (FTC) is currently attempting to prove that Meta's acquisition of Instagram and WhatsApp allowed it to maintain its dominant position in the market, and that spinning out these apps could be a potential remedy.

Meta has downplayed the significance of these emails, stating that "out-of-context and years-old documents about acquisitions that were reviewed by the FTC more than a decade ago will not obscure the realities of the competition we face or overcome the FTC's weak case." However, the emails provide valuable insight into Zuckerberg's concerns about the potential risks of Instagram's growth on Facebook's success.

The implications of these emails are significant, particularly in the context of the ongoing antitrust trial. If the FTC succeeds in its case, Meta may be forced to spin out Instagram and WhatsApp as separate businesses, a scenario that Zuckerberg himself considered as a possibility in his 2018 email. The outcome of this trial will have far-reaching consequences for the tech industry, and these emails provide a rare glimpse into the strategic thinking of one of the industry's most influential leaders.

In conclusion, Zuckerberg's internal email reveals a complex and nuanced understanding of the risks and opportunities associated with Instagram's growth. As the antitrust trial continues, it remains to be seen how these emails will influence the outcome, but one thing is clear: the future of Meta's family of apps hangs in the balance.