Facebook Instagram Merger Agreement

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Facebook Instagram Merger Agreement

Given the climate of the agreement, the Speaker of the House of Representatives threatened a dissolution of the merger eight years later. Nadler added that Facebook`s acquisition of Instagram was contrary to antitrust laws. “If this was an illegal merger at the time of the transaction, why wouldn`t Instagram now be divided into a separate company?” Nadler asked me. Critics have argued that Facebook views Instagram as a form of nascent competition and bought it to maintain its dominance on social media. You have entered a number of emails from Mark Zuckerberg that indicate that he saw the acquisition this way. Some argue that the FTC`s lack of action at the time proves that merger laws are being violated. With the ongoing review of all things Big Tech, the Guardian reported that Facebook rolls features that allow users of Facebook Messenger and Instagram direct messaging service to send each other via apps. Meanwhile, the FTC`s investigation into the Facebook/Instagram merger has continued and there is a growing media expecting the executors to take legal action, or Congress will insist that changes be made to the merger review to prevent such a merger from being allowed again. But far from being an example of “killer acquisition” that has harmed consumers by reducing competition, the merger has improved the user experience on Facebook and Instagram.

After taking over Instagram in 2012, Facebook began integrating them by making it easier to share photos with each other. A “Like” or comment on Instagram could then appear in the Facebook user`s news feed. The integration also allowed Instagram users to make Facebook friends and connect with them. The stock market suggests that this integration has greatly increased Instagram`s user base and demand for third-party photo apps on the Facebook platform. Zhuoxin Li and Ashish Agarwal found in their analysis that “consumers after their integration with Facebook will receive added value from Instagram, resulting in a sharp increase in the use of Instagram for Facebook photo sharing.” Blocking concentration would have prevented this additional value for consumers. Clearly, Facebook didn`t kill Instagram, unlike the real “killer acquisitions” that some economists have identified, where acquisitions are made to stop the production of a rival into a patented drug.