Economy
Friday 03 October 2014
The multi-billion dollar acquisition of the messaging service WhatsApp by Facebook in Europe is nothing in the way. The European Commission gives the green light for the biggest acquisition of the world’s largest Internet network.
Charts
European Union has approved the purchase of short messaging service WhatsApp through Facebook without conditions. Both companies are not direct competitors, so the transaction does not constitute a threat to competition is, the Brussels Commission based its decision. Representatives of the powerful European telecom industry had run against the deal storm.
The examination by the EU was ahead as indicative of how European competition law is applied to the new world of social media. In addition, concerns about the power of U.S. technology companies are widespread in Europe.
No meeting with fusion partners
The fact that the EU Commission has little concern was already leaked by informed people. The Authority had not met with the merging parties to take stock, the pointed out that the deal will be waved through.
According to best practice EU regulations on mergers will normally be convened such a meeting, if the Commission has serious doubts about the impact on competition in the region, within 15 days after the start of an investigation. ‘ / p>
Facebook announced the purchase of WhatsApp for 19 billion dollars in February. The short message service provides communication need an alternative for sending SMS messages. It is the largest department of a company that is supported by venture capital.
The deal, which was already in April Green of the U.S. antitrust light, could the social network help Facebook, on the change itself to respond tastes of users in their teens and to strengthen its position internationally.
Worried politicians
The deal was criticized by European telecom providers. They argued that providers like WhatsApp use the infrastructure of telecom companies, but would not be taxed or regulated in the same way.
More on the topicLeading European politicians have also expressed concern over the manner in which U.S. technology companies – especially Google – Europe’s digital economy dominate. A hard-won antitrust settlement with Google failed in September, after Brussels had demanded new concessions from the Internet giant.
the face of such resistance Facebook asked the regulators in Brussels is to examine the deal to separate antitrust audits in numerous to avoid European countries.
Source: n-tv.de
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