Home / Blog / European Commission Fines Facebook $122 Million For ‘Misleading Information’!

European Commission Fines Facebook $122 Million For ‘Misleading Information’!

The European Commission has fined Facebook $122 million for misleading information regarding its whatsapp acquisition and not complying with EU merger rules.

facebook

Here are some vital focuses from press release –

1. The European Commission has fined Facebook €110 million for giving wrong or misleading amid the Commission’s 2014 examination under the EU Merger Regulation of Facebook’s obtaining of WhatsApp.

2. The EU Merger Regulation obliges organizations in a merger examination to give rectify data that is not misdirecting as this is basic for the Commission to audit mergers and takeovers in a convenient and compelling way. This commitment applies, paying little heed to whether the data affects a definitive result of the merger appraisal.

3. At the point when Facebook advised the procurement of WhatsApp in 2014, it educated the Commission that it can’t build up solid mechanized coordinating between Facebook clients’ records and WhatsApp clients’ records.

It expressed this both in the warning structure and in an answer to a demand of data from the Commission. Nonetheless, in August 2016, WhatsApp reported updates to its terms of administration and protection arrangement, including the likelihood of connecting WhatsApp clients’ telephone numbers with Facebook clients’ personalities.

4. On 20 December 2016, the Commission tended to a Statement of Objections to Facebook specifying its worries.

The Commission has found that, in opposition to Facebook’s announcements in the 2014 merger audit prepare, the specialized plausibility of consequently coordinating Facebook and WhatsApp clients’ personalities as of now existed in 2014, and that Facebook staff knew about such a probability.

5. This is the first occasion when that the Commission has embraced a choice forcing fines on an organization for arrangement of off base or deluding data since the passage into drive of the 2004 Merger Regulation.

Past Commission choices in such manner were received under the 1989 Merger Regulation as per diverse fine-setting rules.

In answer, Facebook’s official statement reads–

We’ve acted in compliance with common decency since our first collaborations with the Commission and we’ve looked to give exact data every step of the way.

The mistakes we made in our 2014 filings were not purposeful and the Commission has affirmed that they didn’t affect the result of the merger audit. Today’s declaration wraps this matter up.

 

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