EU clears Facebook's $19 bn buyout of WhatsApp

Published October 3, 2014
— File photo by Reuters
— File photo by Reuters

BRUSSELS: European Union regulators on Friday cleared the buyout of the WhatsApp mobile messaging service by Facebook, despite opposition by telecom companies afraid of the growing power of US technology giants.

In a statement explaining its approval of the $19-billon (15-billion-euro) deal, the European Commission, the EU's executive arm, said Facebook and WhatsApp were “not close competitors” and that consumers would continue to have a “wide array of choices”.

“We have carefully reviewed this proposed acquisition and come to the conclusion that it would not hamper competition in this dynamic and growing market,” EU Competition Commissioner Joaquin Almunia said in a statement.

Facebook, the world's biggest social network, announced the buyout of the WhatsApp messenger service, used by 600 million people, in February and US authorities approved the deal in April.

The European Commission only automatically reviews deals where each company involved has sales of over 100 million euros across at least three EU states, which was not the case for this deal.

But the powerful European telecom lobby had argued that Facebook and Whatsapp together would have access to an unfair stock of user data and gain an unfair competition advantage in the crucial data and consumer habit market used by advertisers.

But the Commission turned down this argument concluding that, regardless of whether Facebook would start collecting WhatsApp user data, “the transaction would not raise competition concerns".

After the merger, “a large amount of Internet user data that are valuable for advertising purposes are not within Facebook's exclusive control,” the commission said.

The decision comes as US Internet giant Google faces intense scrutiny from the Commission over accusations of unfair advantages the search engine gives its own services in search results.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Return to the helm
Updated 28 Apr, 2024

Return to the helm

With Nawaz Sharif as PML-N president, will we see more grievances being aired?
Unvaxxed & vulnerable
Updated 28 Apr, 2024

Unvaxxed & vulnerable

Even deadly mosquito-borne illnesses like dengue and malaria have vaccines, but they are virtually unheard of in Pakistan.
Gaza’s hell
Updated 28 Apr, 2024

Gaza’s hell

Perhaps Western ‘statesmen’ may moderate their policies if a significant percentage of voters punish them at the ballot box.
Missing links
Updated 27 Apr, 2024

Missing links

As the past decades have shown, the country has not been made more secure by ‘disappearing’ people suspected of wrongdoing.
Freedom to report?
27 Apr, 2024

Freedom to report?

AN accountability court has barred former prime minister Imran Khan and his wife from criticising the establishment...
After Bismah
27 Apr, 2024

After Bismah

BISMAH Maroof’s contribution to Pakistan cricket extends beyond the field. The 32-year old, Pakistan’s...