Facebook spent $ 19 billion acquisition of mobile instant messaging startups WhatsApp transactions has been officially approved by the European Commission.That is, the European Commission believes that these two companies is not a business similar competitors. The European Commission confirmed in a statement, pointed out three areas of the two companies will not form of unfair competition against other competitors, these three areas are: consumer-oriented communication services, social networking services and online advertising services .
The third area, that advertising actually also been included, it is estimated that many people is beyond expectation. The European Commission ignored the issue directly related to privacy, even said that if put in a Facebook ad on WhatsApp (given the two companies prior commitments, should not do), still does not undermine the competitive environment, because there is in addition to Facebook Many companies in the mining user data:
"(Except Facebook) still have enough companies like Facebook can provide accurate delivery of advertising services and advertising services for a large number of Internet users valuable data, do not be under the sole control of Facebook. "The European Commission wrote.
Earlier this year, the Federal Trade Commission, after investigation, approved the deal. The European Commission is to complete the deal Facebook last obstacle.Today, this obstacle has ceased to exist.
After the investigation concluded that the United States Trade Commission, Facebook Messenger and WhatsApp is not a business similar to competitors, even though the latter was acquired by the former, consumers still have a lot of other communications applications for consumers to choose from. Although consumer-oriented communications applications to social networking features, but the survey showed that the combined entity after the composition will still face considerable competition.
European Commission Competition Bureau also issued a lengthy statement outlining not use communications services, social networking services and online advertising services to consumers after the combined impact of reasons.
In communications applications, the European Commission said their investigation only applications for smart phones launched as WhatsApp only conduct business in a mobile platform. The European Commission, after investigation, said bluntly, "similar to the Facebook Messenger and WhatsApp is not a business competitor."
Facebook Messenger has been hoping to improve downloads, which want the user to use a separate application instead of using Messenger within Facebook. This is also the European Commission as one of "Messenger and WhatsApp not the same as" grounds.
WhatsApp is based on the mobile phone number instead of a social network ID to login. That is to say, "Although Facebook Messenger is a standalone application, but in view of its social networks and Facebook integration, the user experience is still the same." As WhatsApp, as we all know, you need to use mobile communications recorded to create buddy lists, and Facebook Messenger, you can use Facebook profile directly. In reality, it seems that users in different ways in the use of these two applications, but there are many users simultaneously using these two applications. In addition, this market is a very active, competitive market, the market has a good several similar applications, such as Line, Viber, iMessage, Telegram, micro-channel, and Google Hangouts.
Although these applications in the "social effect" on a direct relationship, but they do not overlap each other: "From the point of view popularity, WhatsApp and Facebook Messenger has a very large user base, however, in some cases, there is. Several factors contribute to the social effects of such an impact. Commission after investigation found that the growth rate of consumer-oriented mobile applications market is very fast, very short innovation cycles, each company's market position is constantly changing. Apart Beyond this, the introduction of a new application required a very short period of time, does not need too much investment. Moreover, consumers can use a variety of applications, switching between a variety of applications is also very easy. "
In social networks, the European Commission said that the reason to stop this merger is not appropriate. The European Commission's own words, it says, "The market survey shows that the line between them is constantly changing." Earlier, the European Commission gave instant messaging applications market application developers and operators made a survey of a 60 questionnaire. The European Commission noted that some companies surveyed even said, "WhatsApp has become a positive social network to compete with Facebook applications."
However, the European Commission ultimately found that the two companies' relationship, even if the competition is not similar to the competitive business relationship exists, especially the service Facebook provides much richer than WhatsApp. "European Commission also referred to the Line and other micro-letters application as the basis for judgment. Indeed, it is this layer of competition between Facebook will seek to acquire the most powerful company in the field.
In online advertising services, the European Commission has also made an assessment of the Competition Bureau. Assessment of three areas in this field is the most interesting one, because the assessment of other problems in this area will be hit by other departments regulatory privacy protection.
Interestingly, the European Commission and is not based on WhatsApp no advertising (WhatsApp always promise) to assess the facts, but on what will happen if WhatsApp to evaluate advertising and concluded that even if there WhatsApp advertising "nor will it affect the competitive environment . "
The reason is that the European Commission believes that the market in addition to Facebook, there are a lot of companies use data mining techniques based on user-generated data to achieve precise delivery of advertising, so this area is not under the exclusive control of Facebook.
In addition, the European Commission also assessed following several possibilities: (1) Facebook advertising on WhatsApp; (2) Facebook use WhatsApp user data collected to improve the accuracy of its advertising. The European Commission concluded that, regardless of whether advertising on Facebook WhatsApp, regardless of whether Facebook will use WhatsApp user data collected, neither will affect the competitive environment. The reason is that the two companies after the merger, in addition to Facebook, there are still plenty of accurate advertising service providers to choose from.
If you seriously think about, you will find this statement a little strange. The European Commission seems to know this, so directly said in a statement "any privacy-related issues with the transaction resulting in increased control of data under Facebook's caused, will not be competing in the European Union under the jurisdiction of the relevant laws."
Ironically, on privacy issues, Facebook is one of the most experienced companies in the European scrutiny. (Translation: animal husbandry yards person)
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