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EU Fines Facebook $122 Million Over Misleading Information On WhatsApp Deal (siliconrepublic.com)

Posted by msmash on from the pay-the-price dept.

On Thursday, the European Union's powerful antitrust chief fined Facebook 110 million euros, or about $122 million, for giving misleading statements during the company's $19 billion acquisition of the internet messaging service WhatsApp in 2014. From a report: During the review process, the EC discussed the possibility of Facebook matching its users' accounts with WhatsApp users' accounts, to which Facebook replied that it "would be unable to establish reliable automated matching" between the two. Since then, though, the company has found a way, and it seems pretty straightforward. Unhappy with this, the EC today revealed a "proportionate and deterrent fine." How it acts as a deterrent, however, is unclear. Facebook was at risk of a fine totalling 1 percent of its turnover, which would have been closer to 200 million euros, but the figure was lower due to its compliance during the investigation. "The commission has found that, contrary to Facebook's statements in the 2014 merger review process, the technical possibility of automatically matching Facebook and WhatsApp users' identities already existed in 2014, and that Facebook staff were aware of such a possibility," the EC said.

7 of 31 comments (clear)

  1. if WhatsApp number == FB profile number ...? by aneroid · · Score: 2

    Seriously, there's nothing difficult about that. Load up list of WhatsApp users, and db lookup FB user's phone numbers from their own db. Or one tiny bit more complex if needing to account for missing country codes in the FB phone number.

    Even without tech knowledge, knowing ppl provide their phone numbers in FB and knowing that can be matched to WhatsApp doesn't require any sort of leap. Aargh.

    1. Re:if WhatsApp number == FB profile number ...? by thegarbz · · Score: 2

      That is not reliable, because not every user knowingly provides FB with a phone number.

      FTFY

      Permissions from the Facebook app:
      Read_Phone_State - Can read the number if stored in the device which it is quite often.
      Read_Profile - Can read the number if stored in the users own contact card.
      Get_Accounts - Can skip all the above and just get the details of the WhatsApp account off the phone.

    2. Re:if WhatsApp number == FB profile number ...? by gnick · · Score: 2

      You're talking about Spyware-like behavior; I don't think the Facebook app does that.

      It is spyware-like behavior. I think the FB app does exactly that. They base their business on being as close to spyware as they can get away with.

      As an example, if you have location services enabled, FB will collect information about everywhere your phone has been and make guesses as to businesses you've visited. If they're doing that, I don't think they'd hesitate at all to peek at the phone numbers stored in your phone.

      --
      He's getting rather old, but he's a good mouse.
  2. Re:What's so difficult by Opportunist · · Score: 4, Interesting

    The EU (or, more precisely, its lawyers) don't care if it's easy or hard. They say "don't do it", Facebook said "Oh don't worry, we can't anyway". Turns out they not only can but also do. Basically the EU is now pissed because they were lied to and now simply present Facebook the invoice for trying to bullshit them.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  3. Re:What's so difficult by TommyNelson · · Score: 2

    Also, it is probable that the argument went at least partially toward the EU allowing the merger in the first place. All considered, they got away with a very light slap on the wrist. They are not even being obliged to undo it.

  4. a fine of almost 0.5% by Frederic54 · · Score: 2

    wow, who cares? Certainly not Zuckerberg!

    --
    "Science will win because it works." - Stephen Hawking
  5. Re:Madness! by Wulf2k · · Score: 2

    Sure, when they say that they can't do something that they can easily do, know that it can be easily done, and then do it easily.