FCC probes Facebook-Instagram deal

post from Ubergizmo on 11 May 2012 12:45:27 AM. © Ubergizmo

According to the Financial Times, Facebook’s $1-billion purchase of photo-sharing site Instagram is under review by the Federal Trade Commission. The Financial Times added that the routine competition investigation could take six months to a year, which could delay the deal’s anticipated second-quarter closing. Unknown to some, deals that involve more than $66 million typically undergo greater regulatory scrutiny, under current antitrust law. Initially, the FTC and Department of Justice will conduct a preliminary review to determine whether any antitrust concerns come up warranting closer examination. After a preliminary review, the majority of deals reviewed by the FTC and Justice Department are allowed to proceed. However, companies may have to provide more information if there’s a second request. (more…)

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