EU Blamed Facebook for Giving Misleading Information on WhatsApp Purchase

The European Commission has charged Facebook Inc (FBO) for providing misleading information during its takeover of the online messaging service WhatsApp. EU Blamed Facebook for Giving Misleading Information on WhatsApp Purchase.

The European Commission doubts that in 2014 takeover, Facebook inaccurately claimed that it was unable to properly match user accounts between Facebook and WhatsApp. It was something the firm started doing just after two years when it began combining user data across the services

EU Blamed Facebook for Giving Misleading Information on WhatsApp Purchase

The commission said on Tuesday that this statement of objections sent to Facebook will not affect the EC’s approval of the $22 billion merger in 2014.

The issue started when a WhatsApp privacy policy changed in August where it said it would share some users’ phone numbers with parent company Facebook, triggering investigations by a number of EU data protection authorities. The Commission claimed that Facebook had indicated in its notification of the planned acquisition that it would be unable reliably to match the two companies’ user accounts.

Facebook spokeswoman said:

We respect the Commission’s process and are confident that a full review of the facts will confirm Facebook has acted in good faith. We’ve consistently provided accurate information about our technical capabilities and plans, including in submissions about the WhatsApp acquisition and in voluntary briefings before WhatsApp’s privacy policy update this year

Facebook is obliged to respond until Jan. 31. If the Commission’s blames are confirmed, it can fine the tech giant of about $179 million, based on 2015 revenues or 1 percent of the turn over.

Companies fined can appeal to the European Court of Justice, which has overturned some penalties in the past. The company will continue to cooperate and give the information officials need to resolve their questions.

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