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Facebook's takeover of Whatsapp has been approved - what does that mean for you?

The European Commission found the Facebook Messenger and Whatsapp applications are not close competitors.

TODAY THE EUROPEAN commission authorised Facebook’s $19 billion bid to acquire Whatsapp.

Facebook was actually the one who asked for the review, as it wanted to avoid going through individual reviews by each EU country’s regulator. It also allows them to avoid unexpected surprises down the line from telecom industries who see both Facebook Messenger and Whatsapp as taking much needed SMS and call revenue from them.

In its decision today, the Commission found that the two applications are not close competitors and that consumers would continue to have a wide choice of alternative consumer communications apps after the transaction.

The Commission found that the two apps were different enough in a number of ways, for example, Whatsapp uses phone numbers while Facebook requires setting up a profile.

Though Facebook Messenger and Whatsapp are both popular apps, the EC’s Vice President Joaquín Almunia said most people use more than one communications app.

We have carefully reviewed this proposed acquisition and come to the conclusion that it would not hamper competition in this dynamic and growing market. Consumers will continue to have a wide choice of consumer communications apps

So what happens now?

Facebook said in July that it is expecting to close the deal by the end of this year. This go-ahead from the European Commission will makes this easier to achieve. As we’ve already mentioned, Facebook won’t be forced to jump through hoops for every EU country’s regulator.

AP / Press Association Images AP / Press Association Images / Press Association Images

And what happens to Whatsapp once Facebook takes over?

If you’re a big Whatsapp user, there’s little cause for concern about it disappearing or changing considerably. Facebook wanted it for a reason – people really like it. Earlier this year, Facebook purchased Instagram for $1 billion and the app was left very much the same.

Something the Commission mentioned, is that Whatsapp is not currently active in online advertising. It looked at what it would do to the market if Facebook introduced advertising on Whatsapp but found no competition concerns.

There’s nothing to stop Facebook from advertising on Whatsapp but, again, the company may prefer to keep things as they are in this regard. Remember, Whatsapp is a subscription service – after a year of free messaging, you are asked to pay $0.99 a year.

Edward Smith / PA Edward Smith / PA / PA

Is there anything I need to be worried about?

For the most part, not really. However, while the Commission looked at potential problems with placing additional data about people all in one place by merging the two, it said control of this does not fall within the scope of EU competition law.

Christian D’Cunha, legal officer at the European Data Protection Supervisor’s office pointed out to The Register that users of these two apps sign up to very different privacy policies.

Whatsapp users are entitled to expect reassurances that their personal data – and those of their friends and family in their contacts – will continue to be processed in accordance with the letter and the spirit of the original terms.It’s worth noting that earlier this year in the US the FTC (while approving the merger) warned both companies that it would hold them to account for their promise that the merged company would not use WhatsApp users’ personal data for targeted ads.

Clarity on this point will not be achieved until Facebook actually owns Whatsapp – today’s news is just a step towards the significant merger.

Read: Facebook tries to avoid future headaches by asking EU to review WhatsApp deal>

Read: Facebook has bought Instagram for $1 billion. But why?>

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32 Comments
    Install the app to use these features.
    Mute STEVE
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    Oct 3rd 2014, 4:14 PM

    I’ve had what’s app at least 4 years and as far as I’m aware I haven’t paid anything. I downloaded it for free too

    191
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    Mute Peter Murphy
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    Oct 3rd 2014, 6:15 PM

    They only announced the charges a year or so ago and only new customers after that announcement get charged as far as I know

    31
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    Mute Ciarán
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    Oct 3rd 2014, 3:08 PM

    As a member of neither service it means my smugness has reached near critical levels

    129
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    Mute Sam
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    Oct 3rd 2014, 3:25 PM

    I join you in that (“,)

    24
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    Mute Sean McKernan
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    Oct 3rd 2014, 10:09 PM

    What’s it like on that high horse?…. in the dark ages

    11
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    Mute Sam
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    Oct 4th 2014, 7:32 AM

    Right now? Pretty effin good. Don’t live in the dark ages, I even have a radio in my car. Just because people can live a life without the aid of a profile for the whole world to see my dinner or 10,000 pics of my daughter doesn’t mean I live in the dark ages. I choose not to use whatsapp but I use viber. Now if you’ll excuse me but I must climb back on my horse.

    5
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    Mute Pinel G
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    Oct 3rd 2014, 3:00 PM

    Facebook would not use WhatsApp users’ personal data for targeted ads – yeah sure… course they wont!

    119
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    Mute Paudi Onail
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    Oct 3rd 2014, 8:10 PM

    yep, and what does that mean for us? we won’t be using it anymore haha bye bye

    these apps are feckin deadly > https://opengarden.com/apps

    8
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    Mute Marc Power
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    Oct 3rd 2014, 2:51 PM

    What does it mean for me? ?…… Another very good reason to ditch face book

    108
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    Mute Marc Power
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    Oct 3rd 2014, 2:53 PM

    And maybe wats app

    57
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    Mute Peter Murphy
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    Oct 3rd 2014, 6:16 PM

    Why?

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    Mute Marc Power
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    Oct 3rd 2014, 7:20 PM

    Mega Corp aversion complex

    5
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    Mute Diarmuid Lenihan
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    Oct 3rd 2014, 3:30 PM

    Since Facebook messenger came out they both do exactly the same thing. It’s a bit like Aldi buying Lidl.

    80
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    Mute Stephen Earle
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    Oct 3rd 2014, 4:48 PM

    Good analogy there

    32
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    Mute Diarmuid Lenihan
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    Oct 3rd 2014, 10:30 PM

    Thanks.

    8
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    Mute Jack_sonM
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    Oct 3rd 2014, 3:51 PM

    Facebook and Google will soon own everything,there’ll be no more independent apps

    47
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    Mute Luke Staines
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    Oct 3rd 2014, 5:16 PM

    But the independent app owners are agreeing to selling their apps! It’s not like it’s an issue!

    23
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    Mute Jack_sonM
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    Oct 3rd 2014, 6:41 PM

    It becomes a issue when they have a monopoly of apps and all your info is spread across a number of different apps witout your concent

    3
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    Mute Paudi Onail
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    Oct 3rd 2014, 8:13 PM

    and lose a LOT of friends in the process. once they buy one, another better app comes out. people don’t like these companies and will move on.

    7
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    Mute Frank Whelan
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    Oct 3rd 2014, 3:46 PM

    What’s with the 99c a year. Was it not a once only payment of 99c. Don’t recall seeing that when paying for it….

    43
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    Mute Imogene O'Brien
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    Oct 3rd 2014, 6:57 PM

    I have never paid for it…

    16
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    Mute Captain kirk
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    Oct 3rd 2014, 3:29 PM

    The end of the world is nigh

    24
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    Mute jimmy collins
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    Oct 3rd 2014, 4:16 PM

    I don’t bother with either, only viber

    22
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    Mute Stephen Earle
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    Oct 3rd 2014, 4:07 PM

    Whats whatsapp ?

    16
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    Mute shane mullally
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    Oct 3rd 2014, 4:12 PM

    Communication app for chatting online to friends-bit like Skype,but texting..

    15
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    Mute STEVE
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    Oct 3rd 2014, 4:26 PM

    So it nothing like skype

    40
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    Mute Stephen Earle
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    Oct 3rd 2014, 4:47 PM

    So its the same as messenger, also owned by facebook, but uses phone numbers and not facebook. Awful lot of money to spend for such a similar object

    17
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    Mute Stephen Earle
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    Oct 3rd 2014, 4:50 PM

    Why re thumb a simple question, get a life you toerags!!

    40
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    Mute David Burke
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    Oct 6th 2014, 12:28 AM

    Because you had the particular type of arrogance to be proud of your own ignorance. Whatsapp is literally the fastest growing thing ever. No service of any kind has ever added users faster in the history of anything.

    But you felt it was important you gave your opinion on something you knew nothing about.

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    Mute shane mullally
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    Oct 3rd 2014, 4:07 PM

    Yanks love power and control-bit like the troika and European Parliament and our lot here!..can’t pick me nose now,without someone looking and recording it…ahh the death of privacy is nearby waiting to pounce…

    10
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    Mute Diarmuid O'Connell
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    Oct 3rd 2014, 4:06 PM

    “Is there anything I need to be worried about”…… ffs

    8
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    Mute Diarmuid O'Connell
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    Oct 3rd 2014, 4:14 PM

    The piss is dribbling out of my knickers and over my high heels as we speak

    13
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