Facebook Fined Over $122 Million By European Union

Facebook and WhatsApp

Facebook, the social media giant faced an unexpected event recently. The silicon valley giant faced a hiccup in its Whatsapp deal which made Europen Union (EU) angry. This led into EU fining Facebook for providing misleading information.

What Happened?

This dates to back to the year 2014 where Facebook was in the middle of the deal for buying WhatsApp. As the deal was international, The Facebook merger must also agree with the rules and regulations of European Union. 

As part of the regulations, European Union question Facebook regarding the future changes and when asked about the linking of user accounts, Facebook said it was not possible even in the future. 

European Union Fines Facebook
European Union Fines Facebook

But the problem here is that Facebook staff knwo about the user linking option in the year 2014 itself and thsi was found out by the comission contrary to that Facebook said. 

As a result, Facebook has to pay 1% of its annual revenue which will be $276 million in 2016. But the fine is further reduced to $122 million due to the cooperation from Facebook. EU sees that it will be a lesson for all the companies regarding mergers.

WhatsApp
WhatsApp was accuried by Facebook in 2014

EU competition commissioner, Margrethe Vestager said,

Today’s decision sends a clear signal to companies that they must comply with all aspects of EU merger rules, including the obligation to provide correct information. It imposes a proportionate and deterrent fine on Facebook. The commission must be able to take decisions about mergers’ effects on competition in full knowledge of accurate facts

Regarding the issue Facebook said,

Today’s announcement brings this matter to a close

Facebook said that it was unintentional and it had not changed the outcomes of merger inquiry. The comapny is facing similar but smaller issues resulting in fines in various areas icluding data collection of users and in many other areas.

Does This Affect Facebook?

Facebook CEO Mark Zuckerberg
Facebook CEO Mark Zuckerberg

This whole issue will result in these things for Facebook:

  • The fine is nothing but a scratch on the thick armor of Facebook
  • This issue does not even affect the Whatsapp accquisition
  • But this will be a lesson for the company to lookout in further deals which may cost the company more
  • There will be no affect for Facebook's operation or Whatsapp's

The issue as EU expected will be a lesson for companies to pay their complete attention in big deals and Facebook must stay away from issues from governing bodies as it is not having good time with those. Remember the basics app ban in India? Stay safe Facebook.

 

SOURCE: NYtimes

Tags: technology

Latest Articles


One has to be cautious while going on a vacation or holiday trip. Since there is a rise in crime, we need to be extra cautious dealing with people, or going out. Below are some…

  Right now, all the aviation companies and countries are working on the same question. Do all electronics need to be banned? While many countries and aviation are agreeing to…

  Do you feel unhappy occasionally without any reason in particular? Do you think this behavior of yours in hampering your lifestyle? Do you feel helpless because you know…

  Elon Musk is Tony Stark in real life. If you don’t know who he is, then let me tell about him in a single sentence. He is the co-founder of PayPal, co-founder, and CEO of Tesla…

  The smartphone that is surrounded by a lot of hype and is the most awaited flagship right now is One Plus 5. The insane success of One Plus 3 and the off the charts reception…

It is a bad time for Internal Combustion (IC) engines and it may turn worse in the coming years. The usage of fossil fuels for power was once the greatest achievement humans…

  The Frenchman has won yet another award for his terrific performances in the Premier League. Conte is named player of the year, by Football Writers’ Association (FWA). Earlier…

  The two well known franchises of IPL who were banned in fixing saga after the IPL 2015 are set to make their return to IPL in its next edition. BCCI confirmed in an official…

  Android Smartphones presently dominate our Indian market in both low-end and high-end models with the majority being the mid-end models. Another OS smartphones percentage (…

Amazon is finding its way almost everywhere. The logistics and cloud computing giant entered into homes also through its smart speaker Echo and now, a streaming service Amazon…

  The Frenchman was signed by the Seria A giants, Juventus, on a free transfer from Manchester United. In the last summer, he was signed back by the Red Devils for a record 89.3…

  S8, the extraordinary flagship of Samsung is known for its advanced specs sheet and the elegant design. The device released this year boasts all the latest features. The phone…

  The world’s population is increasing very fast with India and China being the hotspots of the world and the number just passed 7.5 Billion. 25 million people are added to the…

Space exploration is a difficult yet crucial task for mankind. Mankind eager to know about the universe build impressive machines to explore this vast universe. NASA, ISRO, ESA…

  Scooter have a large market in India. With countless models dropping every year including the iterations, many bike companies initially focus on making scooters suitable for…

  Does your heart skip a beat every time you go up on the stage? Do you forget your speech and allow your mind to go blank? Do you feel nauseated when you look at the audience…

  Forbes, the American business magazine known for its famous lists including Top companies, Most influential people etc also released a list of most valuable brands 2017…

  Whatsapp released yet another update recently. The update lets people in prioritizing some chats over others in their chat windows. Termed as "Pin Feature," this addition will…