After months of waiting, Facebook has been authorized to buy a messaging app WhatsApp, that will be Facebook’s biggest partnership to date.
On Friday, a European Commission completely authorized a acquisition. Facebook announced the proposed purchase of WhatsApp for $19 billion in February. WhatsApp is a low cost messaging app and has 600 million users worldwide. Facebook has 1.3 billion users worldwide and 300 million of them use a Facebook Messenger app. The elect was disturbed that a dual messaging apps were tighten competitors and their partnership would mistreat foe in a messaging market. They ultimately found that there are adequate mobile messaging apps that a partnership wouldn’t hurt competitors.
“Consumer communications apps keep European adults connected and are apropos increasingly popular,” EU Competition Commissioner Joaquin Almunia wrote in a statement. “While Facebook Messenger and WhatsApp are dual of a many renouned apps, many people use some-more than one. We have delicately reviewed this due partnership and come to a end that it would not bushel foe in this energetic and flourishing market.”
“We are gratified to have perceived clearway from a European Commission and demeanour brazen to shutting a acquisition,” a Facebook mouthpiece pronounced in an e-mailed statement.
The Facebook-WhatsApp partnership was seen as a exam for how a European Commission would request foe law to a universe of amicable media. Telecom operators, such as Deutsche Telekom, Orange, and Telecom Italia, were lobbying a elect to stop a understanding amid concerns that it would give extreme marketplace share and too many control over users’ data. The telecom industry argued that WhatsApp, Skype, and Netflix all use telecom infrastructure though aren’t taxed or regulated like telecom companies.
To see if a Facebook-WhatsApp partnership would harm competitors, a European Commission sent dual questionnaires, one roughly 70 pages long, to marketplace participants to get a feeling for foe in a market. The elect found that a Facebook-WhatsApp partnership wouldn’t dramatically change a mobile messaging market.
“[E]ven in a eventuality of an formation between WhatsApp and Facebook such that Facebook’s position in amicable networking services could be strengthened, the net benefit in terms of new members of a amicable network would be limited, since the user bottom of WhatsApp already overlaps to a poignant border with that of Facebook,” a elect pronounced in a statement.
The Facebook-WhatsApp partnership was authorized by US regulators in April.
WhatsApp isn’t Facebook’s many new purchase. The association has done a series of multi-billion acquisitions recently in an try to variegate a company. In July, Facebook paid $2 billion for Oculus VR, a association that creates practical existence headsets. Facebook believes practical existence will be a vital communication device in a future.