Facebook's $1bn bid for Instagram to be investigated by UK regulator
Posted in: Government & Policy at 26/06/2012 14:44
The Office of Fair Trading (OFT) is to investigate Facebook's $1bn bid for Instagram, because it is concerned the giant social network might choke off picture uploads to other sites from the app, or else restrict other apps' ability to upload to it.
The UK competition regulator has asked for comments from interested parties, and given them until 5 July - just two weeks away - to respond. The OFT aims first to decide whether it has jurisdiction over the takeover, and will then determine whether to drop its investigation if it does not or cannot see any harmful effects, or to either seek undertakings from the two companies or refer the entire bid to the UK Competition Commission, by 23 August.
Facebook takeover of Instagram may substantially lessen competition, UK regulator says
The Office of Fair Trading is considering whether Facebook's planned takeover of photo-sharing company, Instagram, could raise competition concerns.
The UK competition authority is seeking "written representations about any competition or public interest issues" from interested parties on whether Facebook's $1 billion bid for Instagram raises competition law issues. The OFT's consultation is open until 5 July.