UK Office of Fair Trading probes Facebook's Instagram buyout
updated 05:22 pm EDT, Mon June 25, 2012
OFT concerned over picture uploads, competition
The UK Office of Fair Trading is reportedly planning to investigate Facebook's Instagram purchase, which is valued at $1 billion. According to The Guardian, the OFT is attempting to determine if the acquisition will prevent picture uploads to other sites, such as Twitter, or prevent competing apps from uploading to Facebook altogether, however the agency is still said to be deciding whether or not it has jurisdiction over the takeover.
The OFT is requesting comments from interested parties up until July 5, and will then decide if it will pursue the matter and seek undertakings from both Instagram and Facebook, or to refer the case to the UK Competition Commission in late August.
The US Federal Trade Commission launched an investigation into the buyout last month, with information being collected from "at least two" Facebook competitors, in what is being described as a routine probe. Facebook will still owe Instagram $200 million if the acquisition is denied by the FTC, although it is not clear if an OFT rejection will bring a breakup fee.
