EU charges Facebook with misleading information during WhatsApp takeover
LONDON: The European Union antitrust regulators have charged Facebook Inc (FB.O) with providing misleading information during its takeover of WhatsApp, opening the company to a possible fine of 1 per cent of its turnover.
The statement of objections sent to Facebook will not have an impact on the approval of the $22 billion merger in 2014, the European Commission said in a statement on Tuesday.
The Commission said Facebook had indicated in its notification of the acquisition that it would be unable reliably to match the two companies’ user accounts.”
“In today’s Statement of Objections, the Commission takes the preliminary view that, contrary to Facebook’s statements and reply during the merger review, the technical possibility of automatically matching Facebook users’ IDs with WhatsApp users’ IDs already existed in 2014,” it said.
“At this stage, the Commission, therefore, has concerns that Facebook intentionally, or negligently, submitted incorrect or misleading information to the Commission, in breach of its obligations under the EU Merger Regulation.”
Facebook has until Jan. 31 to respond. If the Commission’s concerns are confirmed it can impose a fine on the US company of up to 1 per cent of turnover.