Facebook's $1bn bid for Instagram to be investigated by OFT

The Office of Fair Trading (OFT) is to study the offer up to $ 1 billion Instagram, regarding the social networking giant may break upload images to other sites of application, or restrict the ability to download other applications on it.

Competition regulator in the UK has solicited comments from interested parties, and gave them until July 5 - only two more weeks - to respond. OFT aims first to determine whether it has jurisdiction over the takeover, and then decide whether to drop the investigation if it does not or can not see the harm, or both of the two companies seeking business or offer to refer the whole of the Competition Commission in the United Kingdom, August 23

Instagram is one of the fastest growing social networks before, from October 2010 and reached 30 million users just via the iPhone application within 18 months. Simple functions of this service allows people to take pictures and then upload them to their own social networks, and also send them to Facebook or Twitter, and email. The Android version of the application has been downloaded millions of times.

Dared to offer up to $ 1 billion to Instagram in April marked a turning point for the world covering social network Mark Zuckerberg. It aims to add Instagram users - many of whom have posted their photos on Facebook - in the field.

Step up, which was only approved by Mark Zuckerberg, also considered a way for her to move up in the mobile space, where he admitted he struggled to make money because they no have not begun to serve ads to users.

While the OFT's investigation can thwart the takeover, Facebook may initially be more concerned about the ongoing investigation in the U.S. for a similar agreement with the Federal Trade Commission, which has seen the same matter to the OFT - that is, if the recovery was probably cut off from future competition that provided by Instagram.

Facebook said in a statement: "We will continue to work closely with the OFT and we are pleased to answer any questions that arise."

Social networking giant responded to the initial request is understood the OFT, but neither side was not known whether the organization has jurisdiction over the agreement.

OFT has jurisdiction under the 2002 Act on the company, if two or more companies merge to create one in the UK with an annual turnover of over £ 70 million, or 25% share market that are created or strengthened. Facebook has not released data on income in the UK, and also explained that the market share in the UK to download the photo as possible.