Facebook-WhatsApp deal: EU antitrust finally approves the acquisition

The European Union’s antitrust authority says it has approved Facebook’s proposed $19 billion takeover of the messaging service WhatsApp. US regulators cleared the takeover in April, telling WhatsApp to stick to its current privacy practices after the merger, including not to use users’ personal data for targeted ads. The EU antitrust body said that the deal may go ahead because consumers will continue to have a wide choice of alternative communication apps they could use. Facebook runs its own mobile messaging service with its Messenger app but the EU found the merged entity “would continue to face sufficient competition.” Last month, the regulators had asked feedback from Facebook’s rivals and telecoms operators regarding to deal to check if the merger would hamper innovation or leave any negative impact on users and customers in mobile messaging and social networks. EU antitrust chief Joaquin Almunia says “while Facebook Messenger and WhatsApp are two of the most popular apps, most people use more than one communications app.” Facebook bought WhatsApp in February this year at a whopping $19 billion dollars, including $4 billion in cash and approximately $12 billion worth of Facebook shares. It also had $3 billion invested in restricted stock units to WhatsApps founders. The acquisition is touted to be one of the biggest ones in the tech world till date. The Commission says WhatsApp — launched in 2009 — has some 600 million users globally. Facebook CEO Mark Zuckerberg hopes it will reach 1 billion in a few years. With input from Associated Press