Why The FTC Let Facebook Buy Instagram: FB Camera Is Tiny, IG Makes No Money, And Google


Evidence from Facebook and Instagram plus analysis from outside experts has convinced the Federal Trade Commission to today approve the landmark acquisition. After four months of investigation, the UK’s Office Of Fair Trading that works with the FTC also revealed exactly why it approved the deal.

The OFT cites that Camera+ and other competitors dwarf Facebook’s standalone Camera app, Instagram has no revenue and limited ways to earn any, and that Google’s ad business and social network will be stiff competition for Facebook even if it owns Instagram.

Here’s the breakdown of the OFT’s decision, which likely includes many parallels to how Zuck got his way in 5-0 FTC vote for Facestagram.

A Bag Full Of Cameras

One reason cited in the Office Of Fair Trading’s decision to allow the acquisition to proceed was that Facebook’s own standalone Camera app lags far behind other mobile photo apps:

“According to…

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