Why Facebook is releasing an Instagram clone: 4 theories

The social network raised eyebrows yet again when it unveiled a camera app that's similar to the one the company just purchased. What's going on?

On Facebook's Instagram-like camera app, users can select multiple photos to upload directly onto their Facebook wall.
(Image credit: Facebook.com)

Facebook has released a new iPhone photo app called Facebook Camera that allows users to apply vintage filters to their photos. Instagram, a popular service that Facebook purchased in April, also allows users to apply vintage filters to their photos. The new standalone service is "slick," but it makes for a "billion-dollar elephant in the room," says Mike Isaac at All Things D. "Why build another camera app when you just dropped a ton of cash on one?" What is Facebook getting at? Here, four possible theories:

1. The Instagram purchase was purely defensive

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