UK competition body investigates Facebook-Instagram deal

Resistance to Facebook's proposed takeover of photo-sharing service Instagram has prompted the UK's main competition authority to announce an investigation into the deal.

And reports suggest that even the possibility of the $1billion (GBP640million) merger being put under the microscope could even put the deal itself in doubt.

The Office of Fair Trading (OFT) is believed to want assurances that the deal won't stop users from uploading their pictures to other social media sites, such as Twitter.

It has asked for views on the plan by July 15, after which the OFT will have to decide whether it has the authority to rule on the deal. This may be in doubt because, although Facebook has a UK office, it is not a British-owned company.

Views could be sought from developers of other photo-sharing apps, as well as other social networks, according to technology website ZDNet.com.

It follows a similar announcement by regulatory authorities in the US. Its Federal Trade Commission has asked Facebook to provide details of the deal to help it decide whether it considers that it meets competition rules.

Steven Cox

The most experienced member of our copywriting team, Steven Cox spent many years as an offline journalist before joining Lakestar McCann. He has worked as a specialist correspondent for a market-leading transport magazine, a news journalist for major regional newspapers, a commercial features writer with the Manchester Evening News, and a freelance writer and sub-editor. He is now heavily involved in helping Lakestar McCann clients achieve wide coverage through keeping their news feeds updated, as well as in writing and updating on-site copy.

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