Upon Adam Mosseri’s appointment as CEO of Instagram in 2018, the platform was grappling with what he later termed “concerning” declines in user engagement. This decline was partly attributed to intense competition from TikTok, which Instagram estimated accounted for 23 percent of the drop in user time spent on its platform in the U.S. by 2019. The emergence of TikTok intensified during the early stages of the COVID-19 pandemic. In a message to his team in March 2020, Mosseri stressed the necessity for rapid adaptation, stating, “you’re either growing, or you’re slowly dying.”
Mosseri conveyed the urgent nature of the situation during his testimony in the ongoing Federal Trade Commission (FTC) antitrust trial against Meta. The government is alleging that the company has illegally monopolized the market for personal social networking services, encompassing competitors such as Snapchat, while excluding more entertainment-oriented platforms like YouTube and TikTok. His statements underscored Instagram’s perception of TikTok as a significant rival, while also affirming that despite its growing focus on entertainment content, user connection remains a critical component of Instagram’s service, which may be relevant for the court’s considerations.
Since Mosseri’s warning in March 2020, Instagram has achieved greater success, partly due to improved AI-driven recommendations for the Reels feature. Nonetheless, he acknowledged TikTok as “the fiercest competition that we have faced.” As Instagram has worked to enhance its Reels offering to compete with TikTok, the latter has increasingly adopted elements characteristic of Instagram. Mosseri revealed that he previously viewed TikTok as a more passive platform for content consumption. However, he now considers it as “every bit as participatory” as Instagram, noting TikTok’s efforts to foster user engagement through features that promote interaction with friends.
Throughout the trial, Meta has maintained that the social connectivity aspect of its business is diminishing due to competitive challenges. However, Mosseri’s testimony clarified that facilitating engagement among friends remains an essential function of Instagram and a distinguishing factor from competitors. He cited a 2024 video on his own Instagram account that articulated the decision against expanding into long-form video, citing it as less conducive to sharing among friends. He highlighted that, although the overall growth of the app continues, the proportion of time users spend on content shared by friends has decreased.
In a note from 2018, Facebook CEO Mark Zuckerberg emphasized that Instagram must prioritize connections with friends. He warned that if the platform were to focus exclusively on public figures, it might lose its identity as a social product.
Mosseri’s testimony further connected the dots between previous statements made by Zuckerberg, who detailed how Facebook facilitated Instagram’s growth, and the perspectives shared by Kevin Systrom, Instagram’s co-founder and former CEO, who suggested that Zuckerberg eventually redirected resources away from Instagram in favor of Facebook. Appointed CEO after Systrom’s departure in 2018, Mosseri offered a unique viewpoint on whether Meta’s acquisition of Instagram was aimed at fostering its growth or stifling a potential competitor.
Having transitioned to Instagram from a position at Meta, Mosseri brought insights from both companies. He reflected on how Instagram had culturally deviated from its original ethos, admitting that the organization sometimes viewed itself as entirely separate. He acknowledged the frustration of Instagram’s founders regarding changes that limited Facebook’s promotion of Instagram but noted that some concerns may have been amplified.
In conclusion, Mosseri characterized Facebook’s acquisition of Instagram as potentially one of the most advantageous in business history. He pointed out that Instagram has benefitted from Facebook’s vast resources and expertise, while Facebook gained access to the innovative talents of Instagram’s founders—an advantage that is essential for Meta’s competitive edge moving forward.
