EC Fines Facebook $122 Million for Incorrect Information During WhatsApp Acquisition Review
The European Commission fined Facebook about $122.2 million after deciding the company gave "incorrect or misleading information" about its acquisition of WhatsApp during a 2014 merger review, said a Thursday EC news release. The decision focused on Facebook's comments during…
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the EC review that it wouldn't be able to establish automated matching between user accounts of both companies -- statements the company made in the notification form and in response to the commission's request for information. In August, WhatsApp announced it would share some user account information with Facebook, which privacy advocates said violated privacy promises (see 1608250027 and 1609220031). Those groups filed a complaint with the FTC and said the agency would investigate (see 1609070022). The EC "decision sends a clear signal to companies that they must comply with all aspects of EU merger rules, including the obligation to provide correct information," said Commissioner Margrethe Vestager, who oversees competition policy. "It imposes a proportionate and deterrent fine on Facebook. The Commission must be able to take decisions about mergers' effects on competition in full knowledge of accurate facts." Facebook blogged it "acted in good faith" with the EC from the beginning and always sought to provide accurate information. "The errors we made in our 2014 filings were not intentional and the Commission has confirmed that they did not impact the outcome of the merger review [and] brings this matter to a close," it said. The EC said the decision "is unrelated to either ongoing national antitrust procedures or privacy, data protection or consumer protection issues, which may arise following the August 2016 update of WhatsApp terms of service and privacy policy."