Facebook Inc (NASDAQ:FB) And WhatsApp Deal Under EU Scan

by Sean Patterson | Thursday, Feb 27, 2014 | 953 views

Boston, MA, 02/27/2014  (usastockreport) – Facebook Inc (NASDAQ:FB)’s biggest ever $19 billion acquisition of the messaging service WhatsApp Inc. has sparked privacy fears among European Union  regulator. The watchdog, which has so far been ignorant of the existence of the WhatsApp suddenly got juddered by the deal as the regulator demanded the information on how the mobile-messaging service provider’s client data will be utilized by the Facebook.

Extreme Risks Attached With Data Collection

Jacob Kohnstamm, a representative of the EU privacy group said that the 450-million customer start-up can become a subject of research among Europe’s other countries and according to him, any of the 28 data protection regulators may initiate a probe in the company as it is not established in Europe.

Kohnstamm added that the main point of worry for the regulators is about the collection of data from users’ phone book post the download of the application. This alarms the officials as the database so created runs the risk of being utilized for an altogether different purpose. Moreover, the inclusion of data of non-WhatsApp users is beyond explanation and stands in violation of the Dutch and European law.

In addition to this, Kohnstamm cleared that there are absolutely no limits set on the degree of fine set if the probe turns positive and the decision by the Dutch Authorities will depend if the company deliberately violated the laws of the land.

Confusions And Criticisms

From the day Facebook Inc (NASDAQ:FB)-WhatsApp deal is out, the enormous pay of $19 billion has become the talk of the Wall Street as many analysts are looking at the number as simply too much. But, Facebook has its own reason to believe that the combined power of WhatsApp and Facebook could create much more value than it paid. Till now the shares of the company are also echoing the same theory.

Like it? Share it!

Leave A Response