WhatsApp takeover: Facebook gains EU clearance
Deal will not hamper competition, says official
BRUSSELS:
Facebook, the world’s most popular social network, gained European Union clearance for its proposed $19-billion takeover of mobile messaging startup WhatsApp in a deal setting it against the telecoms industry.
The landmark deal is the largest in Facebook’s 10-year history and will give it a strong foothold in the fast-growing mobile messaging market.
WhatsApp is poised to become a potentially powerful rival to companies such as Deutsche Telekom, Orange and Telecom Italia with its plan to add free voice-call services for its 450 million customers later this year.
The European Commission said the deal would not hurt competition. “We have carefully reviewed this proposed acquisition and have 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,” European Competition Commissioner Joaquin Almunia said.
WhatsApp and its rivals such as KakaoTalk, China’s WeChat and Viber have in recent years won over telecoms operators’ customers with a free text messaging option, posing a serious threat to the sector’s revenues from this business that totalled about $120 billion last year, according to market researcher Ovum.
Published in The Express Tribune, October 5th, 2014.
Facebook, the world’s most popular social network, gained European Union clearance for its proposed $19-billion takeover of mobile messaging startup WhatsApp in a deal setting it against the telecoms industry.
The landmark deal is the largest in Facebook’s 10-year history and will give it a strong foothold in the fast-growing mobile messaging market.
WhatsApp is poised to become a potentially powerful rival to companies such as Deutsche Telekom, Orange and Telecom Italia with its plan to add free voice-call services for its 450 million customers later this year.
The European Commission said the deal would not hurt competition. “We have carefully reviewed this proposed acquisition and have 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,” European Competition Commissioner Joaquin Almunia said.
WhatsApp and its rivals such as KakaoTalk, China’s WeChat and Viber have in recent years won over telecoms operators’ customers with a free text messaging option, posing a serious threat to the sector’s revenues from this business that totalled about $120 billion last year, according to market researcher Ovum.
Published in The Express Tribune, October 5th, 2014.