Why The FTC Is Investigating The Facebook/Instagram Deal

It’s been reported that the U.S. Federal Trade Commission has been investigating Facebook’s pending $1 billion acquisition of the popular photo sharing app Instagram. This has left some people scratching their heads, wondering why the FTC – in the middle of its expansive and thorough investigation of Google and with all else the FTC has on its plate – is looking at the acquisition of a single app and a company with less than a dozen employees. Although the FTC hasn’t commented on its investigation, some explanation can be found in how tech markets function generally and what Instagram’s future role in those markets may be.

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