The launch of a new Instagram app caused shares in the owner of Snapchat to fall more than 7 percent–its lowest level in almost four months.
The decline comes after Facebook announced that it is rolling out Threads from Instagram, a new app that will allow users to share photos, video and messages with a close group of friends in a “dedicated, private space.”
“Threads is a standalone app designed with privacy, speed, and your close connections in mind. You can share photos, videos, messages, Stories, and more with your Instagram close friends list. You are in control of who can reach you on Threads, and you can customize the experience around the people who matter most,” the company wrote in a blog post.
As a result, Snap shares fell as much as 7.6 percent, down 22 percent since hitting a 16-month high in July, according to the Financial Times. Facebook saw a 2.4 percent boost to a one-week high.
The rivalry between Snap and Facebook is heating up. Late last month it was reported that Snap has documented Facebook’s alleged anti-competitive moves in a collection of files nicknamed Project Voldemort.
Snap is joining other Facebook competitors in participating in discussions with investigators from the Federal Trade Commission (FTC), with its legal team maintaining a dossier on Facebook outlining allegations of stifling competition. Instagram, for example, has allegedly threatened influencers with losing their verified status if they share Snapchat links. Other offenses allegedly include copying Stories and preventing people from linking to Snapchat profiles, as well as suppressing Snapchat-related content.
But a Facebook spokesperson defended the company, saying “This is competition at work and one of the longtime hallmarks of the tech sector. Businesses continually build and iterate on concepts and ideas in the marketplace, making them better or taking them in different directions. This is good for consumers.”