“If Facebook can have Instagram, it will be a leading player in photo sharing both online and on mobile. (See Om’s explanation here). The FTC is concerned Facebook could become a dominant advertiser on these platforms — and hurt competition.”—
Rafer sez: I have a different take on the importance of the deal. Facebook’s mobile traffic is growing beautifully, regardless of its affect on their ad revenue. The could become a solid #2 to Instagram on their own.
Instead, what Facebook needs is a giant pile of pictures that are accessible outside the social graph. There are an increasing number of important smartphone applications that need photos to display and/or process without privacy concerns. It’s a lot cheaper and less risky for FB to buy Instagram than it is to screw around with the privacy of their existing photo sharing.
If you’ve been paying attention these past few years, you know by now that the world is most definitely your oyster. Thanks to the game changing power of Internet, you can disrupt markets, wear a sarong to work and never answer to a clueless boss again. Sure, it may sound too good to be true. But trust me when I say that doubt will get you nowhere.
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