WhatsApp Co-Founder Dismisses Claims of Competing with Facebook Amid Antitrust Case

Brian Acton, co-founder of WhatsApp, stated that prior to his sale of the messaging service to Mark Zuckerberg, there were no intentions to incorporate social networking functionalities to rival Facebook—a declaration that strengthens Meta’s position amid federal antitrust accusations.

“We had no desire to create features similar to Facebook such as a news feed or any Facebook-like characteristics,” Acton remarked on Tuesday while testifying at a federal court in Washington. He elaborated that WhatsApp could have maintained a subscription model rather than resorting to targeted advertising had it remained independent.

Acton’s statements were part of the antitrust lawsuit being pursued by the US Federal Trade Commission against Meta Platforms Inc., now entering its sixth week. The FTC alleges that due to its acquisitions of WhatsApp and Instagram over ten years ago, Meta has established an illegal monopoly in social networking, seeking to dismantle the company. Meta contests these allegations and claims to face significant competition from various competitors, including TikTok and Apple, which the FTC has ignored.

The acquisition of WhatsApp is central to the case, with FTC attorneys suggesting that Meta perceived the messaging service as a genuine competitor in the social media landscape prior to its $19 billion (around ₹1,62,550 crore) purchase in 2014. Although WhatsApp did not provide social-networking capabilities at that time—it functioned as a private messaging platform similar to texting—FTC representatives have noted that many competing messaging applications were beginning to branch into social networking during that period. They also revealed confidential communications from Meta executives concerned that WhatsApp might follow suit.

“The greatest competitive threat we face is from a company that develops a messaging service for small group communication and subsequently expands it into a full-fledged social network,” wrote Meta’s CEO Zuckerberg to the board in February 2013 when the entity was still known as Facebook.

Zuckerberg spent over a year pursuing WhatsApp co-founder Jan Koum before finalizing the acquisition, while Meta monitored the development and capabilities of multiple mobile messaging applications, including WhatsApp, as documented.

On the other hand, Meta’s legal team has maintained that WhatsApp had no intentions of delving into social networking or establishing a competing ad business. A handwritten note from Acton stating “No Ads! No Games! No Gimmicks!” was presented in court earlier in the proceedings, and former team members have testified that no such plans were in motion. Acton was called to testify on Tuesday by Meta to reinforce this argument.

While testifying, Acton was queried by an FTC lawyer about whether Meta accounted for advertising potential in its purchase offer for WhatsApp. He stated he was unsure of the specifics of Meta’s valuation process but presumed that advertising may have factored into it, considering the nature of its business. Acton conceded under questioning from the FTC that WhatsApp would have pursued feature enhancements if it had not been acquired by Meta.

Additionally, he mentioned his opposition to Facebook’s introduction of a commercial version of WhatsApp, claiming it could compromise end-to-end encryption, and that such a business model was initiated only after his departure from the company. A portion of the FTC’s case has been aimed at demonstrating that the acquisitions resulted in consumer detriment that would not have occurred had WhatsApp or Instagram remained independent.

Responding to inquiries from Meta’s attorney, Acton remarked that Meta had provided a “fair valuation” for WhatsApp based on its audience size. He also pointed to the success of its subscription strategy in seven nations in 2014, expressing his belief that WhatsApp could have potentially earned even more through subscriptions had prices been increased.

Acton has experienced a vivid journey with his previous employer since exiting Meta in 2018. He profited billions from the sale of his enterprise—his current net worth stands at $4.5 billion (approximately ₹38,501 crore), as per the Bloomberg Billionaires Index—but eventually departed the company after Meta began to devise plans to monetize the app through advertisements. Acton felt that this approach would endanger the confidentiality of WhatsApp users, and he has since expressed some remorse about parting with the application. Following Facebook’s Cambridge Analytica privacy scandal in 2018, Acton tweeted “#DeleteFacebook.”

The case is Federal Trade Commission v. Meta Platforms Inc., 20-cv-03590, US District Court, District of Columbia (Washington).

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