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Tuesday, 2 September 2014

Facebook's WhatsApp deal a bad idea?

13:21


The EU can raise Facebook's rivals and major telecoms corporations if its projected $19bn bid for WhatsApp may be a unhealthy plan before it approves the deal. in an exceedingly unclear list of queries the fair  commission can arrange to calculate if Facebook's acquisition can stifle innovation and cause value hikes.

Facebook's deal to shop for WhatsApp, the most important in its history, would see it become one amongst the most important players in mobile electronic communication. The EU has set itself a three Gregorian calendar month point in time to approve the deal and has sent an in depth form to rival companies and telcos.

"If negative, please make a case for why and what reasonably negative impact (for example increase, deterrence of innovation, etc)," the document asked.

Rival corporations were additionally asked if Facebook owning WhatsApp would have an effect on advertising, the value of advertising and, crucially, whether or not traditional users would be suffering from the deal.

"As a results of the Facebook/WhatsApp dealing, does one expect users of WhatsApp to face larger difficulties in shift to a different shopper communications service/app?" the form browse.

Facebook has been given a better ride within the North American nation with the Federal Trade Commission waving through the deal in Gregorian calendar month with bottom caveats. Despite the takeover not being massive enough to trigger associate degree automatic EU investigation Facebook asked the fair  commission to appear into it.

It isn't clear why Facebook took this action, though it appears doubtless that the social networking large is attempting to rubber stamp the deal to avoid to any extent further investigations. corporations have till eight Gregorian calendar month to retort to the long form.

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