Facebook/WhatsApp deal gets EC clearance

The European Commission (EC) has reportedly given the green-light to the $19 billion acquisition of WhatsApp by Facebook, stating its investigation found that, after the transaction, the combined business “would continue to face sufficient competition”.

The EC noted that while it was able to analyze potential data concentration issues with regard to the impact on the online advertising market, “any privacy-related concerns flowing from the increased concentration of data within the control of Facebook as a result of the transaction do not fall within the scope of EU competition law”.

In a statement, Joaquin Almudia, VP in charge of competition policy, said: “While Facebook Messenger and WhatsApp are two of the most popular apps, most people use more than one communications app. We have carefully reviewed this proposed acquisition and come to the conclusion that it would not hamper competition in this dynamic and growing market.”

The EC probe focused on three areas: consumer communication, social networking and online advertising.

With regard to communication services, the Commission noted that WhatsApp and Facebook Messenger “are not close competitors”, with the former being based on phone numbers and the latter closely related to profiles on the social network.

Noting that “users seem to use the two apps in different ways and many of them use the two apps simultaneously on the same mobile handset”, it also said that this is a “very dynamic market” and cited alternatives such as Line, Viber, iMessage, Telegram, WeChat and Google Hangouts.