Facebook Acquisition of Instagram to Undergo Lengthy FTC Investigation

Facebook has been informed that that U.S. antitrust regulators will subject its Instagram acquisition to a lengthy investigation.

Facebook has received a "second request" from the Federal Trade Commission, essentially a request for relatively large amounts of data that the regulators will sift through to ensure that the deal complies with antitrust law.

A prolonged review adds another headache to the No. 1 social network, whose shares on Tuesday slid below $29 (18.5 pounds) to a new low as nervous investors continued to show their concerns about Facebook's long-term business prospects and rich initial public offering price of $38.


While the deal is still expected to be approved. It is being examined closely due to the high price Facebook paid for the photo sharing app.

"When the dominant firm is paying clearly an excessive price to take out a rival, it gets the closest scrutiny of all," said David Balto, a former FTC policy director.

You can download Instagram from the App Store for free.

Read More [via Reuters]