A recent court filing in a U.S. antitrust lawsuit against Meta reveals that CEO Mark Zuckerberg, alongside Instagram head Adam Mosseri and other executives, perceives TikTok as a formidable adversary, outpacing Meta in the social media arena. Documented conversations from February 2022 indicate a shift in focus, with Zuckerberg declaring Facebook to be a “challenger” that has “lost the mindshare and momentum” to TikTok, which he identifies as fostering a “shared context” among friends through its viral content.
Mosseri echoed this sentiment, positing that Facebook is no longer the primary engine for content discovery, noting that YouTube might currently hold that title but predicting TikTok would overtake it. He expressed concern that TikTok’s exclusive video format was significantly impacting Facebook’s position.
Evidence supports Mosseri’s observations: TikTok has reportedly surpassed YouTube in average watch time in the U.S. by 2021, and recent findings from Qustodio indicate that young users now spend 60% more time on TikTok compared to YouTube. In an effort to adapt, Netflix has even integrated a TikTok-like feature into its mobile platform.
The lawsuit has arisen as the government accuses Meta of violating competition laws through its acquisitions of Instagram and WhatsApp to monopolise the social networking space. However, the internal communications suggesting Meta’s vulnerability against TikTok could potentially undermine the government’s case. Zuckerberg acknowledged Facebook’s significant user engagement but lamented its decline in time spent, attributing it to TikTok’s ability to create a shared user experience where friends encounter similar content organically.
Other Meta executives contributed to this narrative; Will Cathcart, head of WhatsApp, highlighted how TikTok’s commenting system fosters community engagement, enhancing the platform’s algorithmic effectiveness. Stan Chudnovsky, a former VP and GM, noted that the market had fragmented with competing platforms encroaching on Meta’s growth, asserting that simply adding features like Stories is no longer adequate to retain users.
John Hegeman, then VP of Ads, recognised TikTok as a leader in short-form video content and its superior creation tools, while voicing uncertainty regarding Meta’s competitive edge in machine learning and technical developments. Collectively, these revelations illustrate an internal acknowledgment at Meta of its dwindling dominance in the social media landscape, with executives clearly feeling the pressure from TikTok’s rise.
Zuckerberg’s testimony corroborates this concern, stating that TikTok poses a significant risk to Meta’s financial performance and has impeded its growth trajectory. As the trial progresses, the evidence of Meta’s internal fears about TikTok may play a critical role in shaping the outcome of the case against the tech giant.
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