Federal agency probes Facebook deal to buy Instagram for $1billion
A federal agency has launched an investigation into Facebook's blockbuster $1billion purchase of the photo-sharing app Instagram.
The Federal Trade Commission has started an antitrust probe of the deal that could delay Facebook's takeover of the company, it has been revealed.
The inquest could take six months to a year, which would set back the company's plans to close the deal within the next few months.

Probe: An investigation has been launched into the Facebook deal to acquire photo file-sharing service Instagram for $1billion
The investigation is considered a competition probe, a routine procedure for deals that involve more than $68million, according to the Financial Times.
Competitors Twitter and Google are among the companies the federal agency is collecting information from on the matter, the newspaper reported.

The long timeline conflicts with Facebook's intention to wrap up the deal in the second quarter of 2012.
The investigation will allow federal regulators to review the major purchase and get a better perspective on the competition.
Instagram is particularly popular among smartphone users, an area where Facebook has had some trouble gaining ground.
Facebook boss Mark Zuckerberg is adamant that Instagram will remain a concern for now.

Future: The merger between Facebook and Instagram, which popular among celebrities like Kim Kardashian, could improve Facebook's mobile strategy
In his statement announcing the acquisition last month, he insisted Facebook would be 'mindful about keeping and building on Instagram's strengths and features rather than just trying to integrate everything into Facebook.'
He added: 'That's why we're committed to building and growing Instagram independently. Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread this app and brand to even more people.'
The probe may force Facebook to wait longer before it can begin working on its new merger.
Until the deal if finalized, Facebook cannot work on any aspect of the mobile application or learn about the service's techniques to lure in mobile users.