I fail to understand how that was the case?

Facebook wasn't given to Zuck, he just copied MySpace, but made it so only college students could use it. This created the illusion of exclusivity which made everyone want it. By the time he opened it up to all users, it was seen as the better alternative.

Coinciding with this, MySpace allowed users with understanding of HTML to bypass the format of MySpace to create their own layouts and designs. Facebook couldn't implement this feature which turned out to be a blessing for them. This lead to a more disjointed and chaotic feel that made Facebook easier to use for utility. People preferred updating their own profiles on MySpace, but the more restrictive nature of Facebook made it easier to use for both users viewing other peoples profiles, and for advertisers to know who and what they were advertising.

No government handed it to him though. I worked for Friendster at the time which was the social network before MySpace or Facebook.