The fallout from Instagram's terms of service controversy last month could be worse than expected, a new report contends. According to AppStats, a statistics tool for Facebook applications, Facebook's Instagram has lost nearly half its daily users since an uproar over a proposed revised terms of use statement swept the Internet on Dec. 17, 2012.

AppStats says the photo-sharing service's daily users dropped from 16.35 million on the day of the controversy to 7.42 million as recently as yesterday. Instagram has since ditched the…

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via Imaging Resource News Page

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