Facebook’s Previous Approach to Competing Business
In the past, one such company was Instagram, which Facebook founder and CEO Mark Zuckerberg deemed a threat to his company. Zuckerberg, at the time, reportedly suggested that his business simply purchase the competitor and bypass any process by which Instagram could independently gain ground.
“These businesses are nascent but the networks established, the brands are already meaningful, and if they grow to a large scale they could be very disruptive to us,” he wrote to the Chief Financial Officer of his company, David Ebersman. “Given that we think our own valuation is fairly aggressive and that we’re vulnerable in mobile, I’m curious if we should consider going after one or two of them. What do you think?”
That sentiment has been the subject of much controversy in Congress, particularly among Democratic lawmakers, and the grounds upon which they argue that Zuckerberg and his business have grown to the point that they are effectively monopolizing the space.
Facebook’s Way of Sidestepping Accusations of Anti-Competitive Business Strategies
By pivoting to investing in the small(er) business market, the gigantic company is sidestepping the criticism and still maintaining control over competitors.
"In the same spirit that the New Product Experimentation (NPE) group is charged with product experimentation, the team is also experimenting with ways to support external startups, including with capital," Facebook told Axios.
The Opportunities Facebook Is Giving Small Business
The bottom line is that Facebook is always looking to innovate and further solidify its place as the dominant social media company worldwide, and it’s been a remarkably successful business strategy.
According to Macro Trends, a website that tracks the value of business across the world, Facebook’s worth as of February 12, 2021, is $770.29 billion and has grown tenfold since the business went public in 2012.
So it’s clear that Facebook shows no signs of fading anytime soon — and that’s a good thing for startup businesses. The venture capital wing of the company has the potential to bring great opportunities to small businesses and bring innovative ideas to the forefront.
About the Author
Elijah Labby is a graduate of the National Journalism Center. He has previously written for Broadband Breakfast, a technology and internet policy website.