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Facebook hit with $122 million fine by EU over "misleading" WhatsApp deal

By midian182 · 4 replies
May 18, 2017 at 10:00 AM
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  1. Facebook's ongoing problems in Europe reared their head yet again today. The European Commission has fined the social network $122 million for “providing incorrect or misleading information” related to its 2014 acquisition of messaging service WhatsApp.

    According to the Commission's statement, Facebook misinformed antitrust regulators when it said it could not automatically share data between users’ WhatsApp and Facebook accounts. An update to Facebook’s policies and T&Cs last August meant more WhatsApp user data, including phone numbers, would be shared with its parent company, contradicting the earlier claim.

    "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," reads the statement.

    Back in December, the Commission said Facebook “intentionally or negligently” submitted misleading information during the agency's investigation into the $19 billion takeover. Facebook is accused of lying a second time in response to the Statement of Objections.

    Facebook has admitted it made errors in the 2014 filing but insists they were not intentional. The company added that the Commission has confirmed it would not go back on its approval of the merger. "Today's announcement brings this matter to a close," Facebook said.

    As it cooperated with proceedings and admitted it was at fault, Facebook escaped a much larger fine. The amount could have reached 1 percent of its annual turnover - $276 million based on its 2016 financial report.

    Back in September, Germany ordered Facebook to stop collecting data on WhatsApp users. Two months later, the data sharing policy was suspended in the UK following a threat from country’s Information Commissioner’s office.

    Permalink to story.

     
  2. Kibaruk

    Kibaruk TechSpot Paladin Posts: 3,023   +769

    Bullfeces, "we did not know we could actually tie whatsapp and facebook accounts together"... really??? They tie every ducking thing together and suddenly they can't make a reverse image search or just check the profile with the phone number?? That sounds so genius-like billion dollar idea that they never thought that was possible... I mean... come on!
     
    Reehahs likes this.
  3. Mr Dude

    Mr Dude TS Enthusiast Posts: 62   +47

    Why is "misleading" in quotes here? Setting intent aside, incorrect information was provided about the deal, leading to wrong conclusions about Facebook's capabilities. It is, by definition, misleading.


    ...Or are we taking Facebook's side here, against evil, nasty old EU?
     
  4. Raoul Duke

    Raoul Duke TS Evangelist Posts: 1,051   +430

    "Facebook is accused of lying a second time in response to the Statement of Objections."
    saying oh no, we will not tie the data in and then later changing policy is standard operations for these kinds of companies is it not? They just got called out on this one because someone noticed
     
  5. cartera

    cartera TS Evangelist Posts: 351   +103

    Everything else aside, $122 million? The aquisition was $19 billion, that fine is pocket change for them. It is about time governments started handing out fines that make companies stop and think about the consequences of their actions.
     
    Raoul Duke likes this.

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