Market Overview

Instagram CEO Says Potential TikTok Ban 'Very Bad For Us'

Instagram CEO Says Potential TikTok Ban 'Very Bad For Us'

Instagram's newest feature, Reels, is seeing a lot of momentum, especially in India where rival platform TikTok is banned.

This "isn't a reason to celebrate," Instagram CEO Adam Mosseri said on CNBC's "Squawk Box."

What Happened: One might assume that Facebook, Inc. (NASDAQ: FB) would be pleased with the White House's move to force TikTok to sell to an American company or face a U.S. ban.

Yet Instagram's CEO calls this thesis "problematic," as any near-term boost from TikTok's potential demise is "greatly outweighed by the risks of a fragmented internet," he said. 

"If we move to a place where countries start to silo internet within them, and we can’t operate in that way, I think that it’s much more problematic than any short-term benefit." 

Why It's Important: TikTok's sale drama is bigger than just the prospect of two rival companies, as stifling the internet poses a long-term problem, Mosseri said. 

As countries get to decide what platforms allowed to exist, the internet as we know it today will become "fragmented," the social media CEO said. 

What's Next: No one knows what will occur next as the "drama" continues to unfold at a fast pace, he said.

Mosseri declined to comment on who he thinks will win the bid to acquire TikTok and called himself an observer in the situation. 

"I'm actually not enjoying this at all, although some people think it's going to be very good for us. I actually think it's going to be very bad for us over the next maybe five or 10 years," he said. 

Related Links:

TikTok Parent In Talks With US To Retain Part Ownership Of Video App: WSJ

How TikTok's Value Per User Compares To Facebook And Other Social Media Platforms


Related Articles (FB)

View Comments and Join the Discussion!

Posted-In: Instagram social media TikTokNews Management Media Best of Benzinga