On Wednesday, in the ongoing antitrust trial against Meta Platforms, Inc. (NASDAQ:META), former COO Sheryl Sandberg testified about the company’s efforts to block advertisements from potential competitors like Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google Plus, KakaoTalk, and LINE.
What Happened: During the trial, Sandberg addressed internal communications from 2011 and 2012 that the Federal Trade Commission (FTC) claims show Meta’s efforts to block competitors from advertising on its platform, reported the Washington Post.
The FTC’s lawyer, Susan Musser, questioned Sandberg about an email she sent to staff after Google launched Google Plus, in which she acknowledged that the new platform was Meta’s “real competition.”
Sandberg explained that her comments were intended to “rally the troops” in response to a much larger tech company launching a product strikingly similar to Facebook.
When questioned by Meta’s lawyers, she added that she believed Meta faced other competitors both then and now, naming platforms like YouTube, Pinterest (NYSE:PINS), and eventually TikTok.
Earlier in the day, Zuckerberg returned to the witness stand for the third time in as many days. He admitted that Meta’s short-form video feature, Reels, is “pretty good,” but quickly pointed out that TikTok still outpaces both Facebook and Instagram combined.
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Why It’s Important: The trial also revealed confidential conversations between Sandberg and Zuckerberg during their deliberations over the $1 billion purchase of Instagram.
In a text message from spring 2012, Zuckerberg asked Sandberg if she believed the price was excessive, to which she replied, “Yes.”
When questioned by a Meta attorney about whether she still held that view, Sandberg said, “I think I was wrong. I think I was very wrong.”
The FTC’s case against Meta is rooted in allegations of a “buy or bury” strategy.
The trial also revisited Meta’s past acquisition attempts, such as the $6 billion offer to acquire Snap Inc. (NYSE:SNAP), which Zuckerberg defended.
Price Action: On Wednesday, Meta shares dropped 3.68%, ending the trading day at $502.31, according to Benzinga Pro data.
The company currently holds a momentum score of 55.37% and a growth score of 74.89%, based on Benzinga’s exclusive Edge Rankings.
Click here to see how Meta stacks up against Snapchat, Alphabet, and other leading tech firms.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
