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EU to approve Facebook’s bid for WhatsApp for $19 billion

Facebook will win unconditional EU approval for mobile messaging startup WhatsApp over its powerful competitors. Facebook 10 years of reputation will definitely boost up the company on the fast growing mobile technology market.whatsapp-facebook-deal

WhatsApp has planned to include a voice – call feature for its 450 million users by the end of this year. This makes WhatsApp as a competitor for several companies such as Telecom Italia, Telefonica and Deutsche Telekom. Analysts informed that this action will hit the turnovers of telecom providers and the sector went for EU regulators to bring out concession from Facebook.

The commission was convinced by Facebook by saying that the deal has no anti-competitive effects and this doesn’t make the concessions to be a necessary one, the sources said.

European Commission spokesman Antonie Colombani declined to comment, and the deadline for a decision has been set for October 3 by the European Union competition authority.

Tobias Caspary, a partner at law firm Fried Frank said,

“The deal does not seem to pose any competition problems as far as the Commission is concerned,” “Both parties are offering their services for free. It seems unlikely that customers are locked in with respect to instant messaging, and it would be relatively easy to switch to alternative offers, for example, Skype or Line,””Also relevant factors looked at were probably that the entry barriers are relatively low for the instant messaging market, that this is still a nascent market characterized by rapid changes and growth, and that there are several recent entrants.”

WeChat and Viber have already won over the telecoms operators and this won’t be a problem for WhatsApp. U.S regulators have already approved for this deal and this deal will bring out a serious threat to telecom sectors.

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About John W Arthur

John is the head of our IT Security team and he writes about Security, IT news on The Next Digit. He was the Employee of the Year 2013 for his selfless support and efficiently setting up the whole security infrastructure. He also occasionally writes on "IT Sec Pro" Print Media of Sweden. All posts by John

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