EU: Facebook gave us misleading information about WhatsApp acquisition
The European Commission finds that Facebook gave misleading information prior to the acquisition of WhatsApp in 2014. Facebook said it wouldn’t be able to combine users’ private data with WhatsApp’s, but the social network now appears to be able to.
During the approval process for Facebook’s acquisition of WhatsApp, the social network said it was technically not possible to combine accounts from both services. However, Facebook will do so from August, partly to show more relevant advertisements. In the EU, data sharing has recently been suspended. The Commission does not say whether sharing that data is allowed, but concludes that Facebook lied about its ability to combine user data.
The European Commission now gives Facebook until January 31 to respond to the allegation. It will then look into the matter further and if the Commission finds that Facebook has indeed provided misleading information, it could impose a fine of up to 1 percent of the social network’s annual worldwide revenue, which amounts to approximately $179 million.
Facebook is not aware of any harm, the company said in a statement. “A full investigation of the facts will determine that Facebook acted in good faith. We have consistently shared accurate information about our technical capabilities and plans, including in the WhatsApp takeover submissions and in voluntary briefings before updating WhatsApp’s privacy policy. .”