Facebook's $1bn Instagram deal cleared by OFT
By Sarah Shearman, marketingmagazine.co.uk, Tuesday, 14 August 2012 01:28PM
Facebook's $1bn (£641m) acquisition of photo-sharing service Instagram has today (14 August) been given the green light by the Office of Fair Trading (OFT), which has decided not to refer it to the Competition Commission.
The UK regulator launched its probe into the acquisition in June, to investigate whether a merger of the parties would prevent photos being uploaded to rival sites such as Twitter, or using other apps to upload pictures to Facebook.
An OFT spokesman said that having evaluated that the strategies of the two companies, "this was not be the case" and it would therefore not be referring it to the Competition Commission.
A document, which sets out the reasoning by which the OFT has reached its decision, will be published in the coming weeks.
Facebook announced its plans to acquire Instagram, one of the fastest-growing social networks, for $1bn in April, ahead of its IPO.
The app, which allows users to apply filters to photos taken on their phone and share them via social networks, has seen phenomenal growth, amassing more than 30 million users in under two years.
While the ruling is a victory for Facebook, which potentially could have been forced to make modifications to the Instagram business if the merger was not approved, it is still under investigation from the Federal Trade Commission in the US and could face a lengthy wait.
Facebook declined to comment on the news.
This article was first published on marketingmagazine.co.uk
- Account Director - Leading Retail Fashion Brand!! Ultimate Asset £35000 - £38000 per annum + Benefits, London
- ACCOUNT DIRECTOR - CHARITY CLIENT - INDEPENDENT MEDIA AGENCY! Ultimate Asset £45000 - £55000 per annum, London
- Senior Category Manager Ball & Hoolahan £50,000 + car or c/a, West Midlands
- Marketing Controller Ball & Hoolahan £85,000 + Car/Car Allowance, South East England
- Recruitment Consultant Blue Skies Marketing Recruitment £25000 - £35000 per annum, Stratfordupon Avon
- Adam & Eve/DDB wins 2014 IPA Effectiveness Awards Grand Prix
- Enjoyed getting an hour back on Sunday? You'll get years back if you stop smoking, says charity
- Tiffany & Co hires MEC for $100m global media
- Mattessons Fridge Raiders campaign delivers AI robot to YouTube gamer
- HSBC launches Anyone's Game golf campaign
- Pepsi Max pranks cinemagoers for Halloween