FTC approves Facebook-WhatsApp deal
11 April 2014 |
The Federal Trade Commission (FTC) has approved Facebook’s $19 billion acquisition of mobile messaging service WhatsApp, according to reports.
US regulators warned both companies on Thursday that they must adhere to privacy practices and the deal has now been cleared on this condition.
“We are pleased that the FTC has completed its review and cleared our acquisition of WhatsApp,” Facebook said in a statement. “Naturally, both companies will continue to comply with all applicable laws after the transaction closes.”
The FTC’s bureau of consumer protection sent a letter to both companies yesterday reiterating that WhatsApp users’ personal data must not be used for targeted advertisements.
“If the acquisition is completed and WhatsApp fails to honour these promises, both companies could be in violation of section 5 of the Federal Trade Commission Act and, potentially, the FTC’s order against Facebook,” the letter stated.
The deal, first announced in February this year, is yet to be approved by European officials.