And they have now blogged about the whole controversy clarifying their position. The company promises that their intentional is not to sell your photos as lots of blogs and news services are claiming. It is just part of their monetizing strategy aimed to help users and brands expand their social presence.
The company further said that they are going to refine the language to make it clearer. Instagram said:
I am grateful to everyone for their feedback and that we have a community that cares so much. We need to be clear about changes we make — this is our responsibility to you. One of the main reasons these documents don’t take effect immediately, but instead 30 days from now, is that we wanted to make sure you had an opportunity to raise any concerns. You’ve done that and are doing that, and that will help us provide the clarity you deserve. Thank you for your help in making sure that Instagram continues to thrive and be a community that we’re all proud of. Please stay tuned for updates coming soon.
This is a basic strategy employed by a lot of organizations. Come up with a super controversial policy. Internet would complain. You then tone down the language still including all your intentional changes. Internet believes that they have won the battle but you still win the war!