FTC to Probe Facebook and Instagram Deal
The Federal Trade Commission is launching an investigation into the $1 billion deal between Facebook and Instagram.
According to sources close to the deal, the Federal Trade Commission (FTC) will be launching a probe into the US$1 billion deal between Facebook and Instagram. Allegedly, the FTC is now collecting information from Facebook's competitors.
That said, the deal is still expected to be approved. However, as the investigation takes time, this means Facebook won't be able to integrate Instagram into its services as soon as they would have liked. Investigations typically take between six months to a year and until then, Facebook cannot benefit from the purchase. Also, Facebook has agreed to paying Instagram a $200 million break-up fee should regulators disapprove the deal.
Source: Mobile Burn via The Verge
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