EC questions WhatsApp rivals over Facebook takeover - report

News Wireless Europe 10 JUL 2014
EC questions WhatsApp rivals over Facebook takeover - report
European Commission competition authorities have started questioning rival firms about Facebook's proposed acquisition of mobile messaging service WhatsApp. In recent weeks they sent detailed questionnaires to several technology and online-messaging companies, asking about the merger's effect on competition in their markets, people familiar with the matter told the Wall Street Journal. The questionnaires also look at how the companies control and use personal data when they offer services, some of the people said. 

The EU initially wasn't expected to review the WhatsApp takeover because the messaging app doesn't have sufficient revenue in the region to trigger EU merger law. In May, Facebook used a provision of the EU law to ask the commission to conduct a single review that would cover the 28-nation bloc, rather than face the possibility of separate reviews in three or more EU countries. Under the provision, the EU gained jurisdiction to review the deal last month, the people familiar with the matter said. Facebook hasn't yet officially notified the EU of the deal, but now must do so to close the transaction. 

The US FTC approved the deal already in April, with a number of privacy commitments from the two companies. Facebook first announced the takeover in February for USD 19 billion. 

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