Five months after Facebook announced that it would be acquiring Instagram for $1 billion in cash (yay!) and stock (hrmm), the social network is rolling out the welcome mat. The deal was held up by a Federal Trade Commission investigation into potential anticompetitive practices. The FTC approved the acquisition a couple weeks ago, concluding that the popularity of Instagram competitors (like Hipstamatic and Camera Awesome) compared to Facebook Camera meant that competition was thriving.
In its report, the Office of Fair Trading included the fact that Instagram didn’t have any revenue to speak of and didn’t have data on its users–misreading the situation entirely. As The Next Web noted: “That discounts, of course, the enormous contextual value of the location data recorded with each image, not to mention the facial recognition database that Facebook has been working on making second-to-none.” Read More