Instagram CEO Highlights TikTok Competition and Growth Challenges

Instagram CEO Adam Mosseri recently testified in the Federal Trade Commission's antitrust trial against Meta, shedding light on the intense competition Instagram faces from TikTok. Mosseri described how Instagram experienced significant declines in user engagement starting in 2018, attributing nearly a quarter of the drop in US user time to TikTok's rapid growth. This competition forced Instagram to adapt quickly, underscoring the harsh reality in social media: "you’re either growing, or you’re slowly dying."

Mosseri highlighted Instagram’s strategic pivot toward Reels, a short-form video feature enhanced by AI recommendations, as a key factor in regaining user engagement. Despite these efforts, TikTok remains Instagram’s fiercest competitor, evolving from a passive video platform to one that actively encourages social participation and friend connections. TikTok’s introduction of features like a friends’ video feed illustrates its intent to deepen user engagement beyond entertainment.

While Meta has argued that connecting with friends and family has become a smaller part of Instagram’s business, Mosseri emphasized that this remains a core differentiator. He explained that although the share of friend-related content has decreased, Instagram continues to prioritize social connections, which is why the platform has resisted expanding into long-form video formats that are less conducive to sharing among friends.

Mosseri also provided insight into Meta’s internal dynamics following its acquisition of Instagram. He acknowledged cultural differences between Instagram and Facebook teams and noted that while some resource shifts caused frustration, the acquisition ultimately benefited both companies. Instagram gained access to Facebook’s resources and expertise, while Facebook leveraged Instagram’s innovative product talent to stay competitive in a rapidly evolving market.

Broader Implications for Tech Competition and Regulation

Mosseri’s testimony underscores the challenges dominant tech platforms face in maintaining growth amid disruptive competitors like TikTok. It also highlights the complexities regulators must consider when defining market boundaries in antitrust cases, especially as platforms blend social networking with entertainment. Instagram’s dual focus on friend connections and entertainment content illustrates the evolving nature of social media markets and the strategic adaptations required to stay relevant.

For businesses and developers, understanding these market dynamics is crucial for innovating and competing effectively. Platforms must balance user engagement strategies with regulatory compliance, while anticipating shifts in user behavior driven by emerging competitors. The Instagram-TikTok rivalry exemplifies how innovation, AI-driven personalization, and social connectivity remain central to success in the digital ecosystem.