Revealing Court Documents: Meta Executives Admit Facebook is Losing Ground to TikTok

In a recent revelation regarding the ongoing antitrust lawsuit against Meta, it has come to light that the company’s executives, including CEO Mark Zuckerberg and Instagram head Adam Mosseri, perceive TikTok as a significant competitor in the social media landscape. This insight was shared in a document filed with the U.S. Federal Trade Commission (FTC) in February 2022.

Meta Executives Analyze TikTok’s Impact

The document reveals candid discussions among Meta’s top executives about the company’s strategy and market position. Zuckerberg described Facebook as a “challenger,” acknowledging that it has “lost the mindshare and momentum” to TikTok, which he believes fosters a “feeling of shared context” among friends.

Shifts in Social Media Discovery

According to Mosseri, Facebook’s status as the default discovery engine is now under threat. He suggested that while YouTube might be the current leader, TikTok’s data indicates it could soon surpass the Google-owned platform. He stated:

• “The most natural differentiated strategy for Facebook is to be the default discovery surface.”
• “TikTok is 100% video and beating us badly.”

Moreover, Mosseri predicted that TikTok is expanding the social mobile market and encroaching on traditional media, including TV and long-form video platforms like Netflix.

TikTok’s Rising Dominance

Recent studies corroborate Mosseri’s concerns. For instance, TikTok surpassed YouTube in average watch time in the U.S. in 2021. A 2023 report from the parental control software company Qustodio revealed that children aged 4 to 18 spent 60% more time on TikTok than on YouTube. This trend prompted TikTok to introduce 60-minute uploads in a direct challenge to YouTube’s dominance.

Netflix Adapts to TikTok’s Influence

In response to TikTok’s popularity, Netflix launched a new feature in its mobile app that mimics TikTok’s vertical video format, offering personalized video feeds to users.

Legal Implications for Meta

The U.S. government is leveraging the internal discussions of Meta executives in its antitrust case, which alleges that the company has violated competition laws by acquiring Instagram and WhatsApp to establish a social networking monopoly. The insights shared by Meta’s leadership could potentially undermine their defense, as they openly acknowledged TikTok’s competitive edge.

Insights from Meta’s Leadership

Zuckerberg noted that while Facebook may still have the largest user base for daily engagement, it no longer leads in terms of time spent on the app. He emphasized TikTok’s ability to create a shared experience among users:

• “If you and your friends are interested in the same things, you’ll likely come across the same content in TikTok’s feed.”

Other executives echoed similar sentiments. Will Cathcart, head of WhatsApp, mentioned that TikTok’s commenting feature fosters community engagement, while Stan Chudnovsky, a former VP at Meta, expressed concerns about the increasing fragmentation in the social media space.

Future Outlook for Meta

John Hegeman, Meta’s former VP of ads, acknowledged TikTok’s lead in short-form video content and creation tools but remained optimistic about Meta’s potential to compete through its platforms like Reels. However, he was uncertain about Meta’s progress in machine learning and technical capabilities.

This internal documentation illustrates Meta’s perception of itself as the underdog in the competitive social media market. During a recent testimony, Zuckerberg reiterated that TikTok’s success poses a significant risk to Meta’s business and has contributed to its slowed growth.

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