EU clears Facebook's $19 bn buyout of WhatsApp

Published
0

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 X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Risks ahead
Updated 02 Oct, 2026

Risks ahead

To think that the government would rather push out an elected government than grant a single prisoner some facilities does not square up rationally.
Exit from Iraq
02 Oct, 2026

Exit from Iraq

AMERICAN and British troops have once again shipped out of Iraq. On Wednesday, the foreign forces left the Arab...
Lahore’s ozone warning
02 Oct, 2026

Lahore’s ozone warning

LAHORE has received another warning that its air pollution crisis cannot be treated as a problem that begins with...
Fixing bond markets
Updated 01 Oct, 2026

Fixing bond markets

Pension funds, insurance companies, mutual funds, retail investors, and eventually, foreign investors must become bigger participants in the market.
Call centre rackets
01 Oct, 2026

Call centre rackets

A NUMBER of recent raids conducted by the authorities in different cities point to the growing threat fraudulent ...
Homeward bound
01 Oct, 2026

Homeward bound

FIVE months after Somali pirates captured an oil tanker carrying a 19-member multinational crew, Somali maritime...