EU fines Facebook 110 million euros over WhatsApp deal
European Union antitrust regulators fined Facebook (FB.O)
110 million euros ($122 million) on Thursday for giving misleading information
during a vetting of its deal to acquire messaging service WhatsApp in 2014.
Calling it a "proportionate and deterrent fine",
the European Commission, which acts as the EU's competition watchdog, said
Facebook had said it could not automatically match user accounts on its
namesake platform and WhatsApp but two years later launched a service that did
exactly that.
"The Commission has found that, contrary to Facebook's
statements in the 2014 merger review process, the technical possibility of
automatically matching Facebook and WhatsApp users' identities already existed
in 2014, and that Facebook staff were aware of such a possibility," the
Commission said.
Facebook said in a statement the errors made in its 2014
filings were not intentional and that the Commission had confirmed they had not
affected the outcome of the merger review.
"Today's announcement brings this matter to a
close," Facebook said.
The fine would not reverse the Commission's decision to
clear the purchase of WhatsApp and was unrelated to separate investigations
into data protection issues, it added.
Reuters reported on Wednesday that Facebook was set to be
fined.
The Commission could have fined Facebook up to 1 percent of
its turnover - which would have been $276 million based on 2016 results - but
said that Facebook had cooperated with the proceedings and acknowledged its
infringement.
The EU sanction comes after Facebook received a separate
150,000-euro fine on Tuesday by a French data watchdog for failing to prevent
its users' data being accessed by advertisers.
Last week the Italian antitrust authorities levied a 3
million-euro fine on WhatsApp for allegedly obliging users to agree to share
their personal data with Face book.
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