A Stanford study reveals that a potential divestiture of Instagram from Meta would increase competition among advertisers but ultimately harm users by exposing them to more ads. The research suggests that while ad prices may decrease, the quality of user experience could diminish as Instagram would need to target users more aggressively to compete with Facebook. The findings pose challenges for the FTC's case against Meta, which argues that the company is a monopolist.

A new study highlights the increasing difficulty users face in identifying ads on Instagram as platforms skillfully integrate promotional content within organic posts. The research indicates that many users are unaware of the volume of advertising they encounter, raising concerns about transparency and the effectiveness of current regulations in protecting consumers, especially younger users, from hidden advertising tactics.