Meta Executives Acknowledge TikTok's Competitive Advantage in Court Filing
A recent court filing in the FTC's antitrust lawsuit against Meta reveals internal discussions among top executives, including CEO Mark Zuckerberg and Instagram head Adam Mosseri, expressing concern over TikTok's growing dominance.
The February 2022 document highlights Zuckerberg's admission that Facebook has "lost mindshare and momentum," positioning it as a "challenger" against TikTok. He emphasized TikTok's ability to create a "shared context" where users encounter the same content, fostering a stronger sense of community.
Mosseri echoed these sentiments, acknowledging Facebook's decline as the default discovery engine. He predicted TikTok's eventual surpass of YouTube, citing internal data and TikTok's focus on short-form video content.
The most natural differentiated strategy for Facebook is to be the default discovery surface. But it's interesting that [TikTok] is 100% video and beating us badly.
This prediction proved accurate, with studies showing TikTok surpassing YouTube in average US watch time in 2021 and children's screen time in 2023. TikTok's expansion into longer-form video with 60-minute uploads further intensifies the competition.
The filing underscores Meta's internal recognition of TikTok's impact, even as the company faces antitrust allegations for allegedly monopolizing the social networking market through acquisitions like Instagram and WhatsApp. This internal acknowledgment of competition could potentially weaken Meta's defense.
Internal Discussions Reveal Strategic Concerns
Zuckerberg admitted that while Facebook maintains a large user base, it lags behind TikTok in user engagement and time spent. He highlighted TikTok's ability to foster a sense of shared experience through its algorithm, allowing friends to organically encounter the same content.
Other executives contributed to the discussion, noting TikTok's effective use of niche communities and algorithmic recommendations. They also acknowledged the increasingly fragmented social media landscape, with platforms like TikTok, Twitter, Snap, YouTube, Reddit, and Discord competing for user attention.
While Meta executives recognized TikTok's lead in short-form video, ranking capabilities, and creation tools, they expressed confidence in closing the gap through initiatives like Reels. However, concerns remained regarding Meta's machine learning capabilities and technical infrastructure.
This internal dialogue, revealed in the court filing, portrays Facebook as an underdog in the social media arena, struggling to keep pace with TikTok's rapid growth and innovative features. This aligns with Zuckerberg's previous testimony acknowledging TikTok's impact on Meta's growth trajectory.
Related Links (for reference, not included in final content):
