Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Facebook Inc (FB) Continues to Avoid Antitrust Concerns, WhatsApp Deal to be Unconditionally Approved

Facebook Inc (NASDAQ:FB)’s $19 billion purchase of WhatsApp will be approved unconditionally by EU regulators according to Reuters, removing the final barrier between the social media giant and mobile messaging startup. As Jon Fortt said on CNBC today, the deal, which was originally announced on February 19, is another example of Facebook Inc (NASDAQ:FB)’s ability to deftly avoid antitrust concerns.


“When you look at it, Facebook has been extraordinarily good at avoiding antitrust issues, considering the scale and influence they have” Fortt said.

While regulators have been pressured by the telecom industry regarding WhatsApp and its plans to provide free voice calling to its 600 million users, and apply concessions on Facebook Inc (NASDAQ:FB)’s deal as a result, Facebook Inc (NASDAQ:FB) successfully argued that the deal itself was not anti-competitive, and that such sanctions would therefore be unjustified.

The fact that both Facebook Inc (NASDAQ:FB) and WhatsApp are free services and customers are not locked into contracts or the like with them was also cited as a factor in the commission’s decision, since users affected by the deal are free to switch to other services if they’re unhappy with the deal or any resulting changes to services that arise from it.

Another factor may have been the relatively low barrier-of-entry into the mobile messaging market, and the fact that the sector is characterized by rapid changes and success stories, like WhatsApp’s own. Were mobile messaging a more entrenched market where WhatsApp was seen as a dominant and unassailable force, the deal may have met more resistance.

The deal was approved by U.S regulators back in April, who offered but one caveat to WhatsApp; that they maintain their privacy practices following the merger, and not adopt a targeted ads platform that would make use of customer data.

Facebook Inc (NASDAQ:FB) is trading at $77.89 in afternoon trading, just under its 52-week high of $78.94.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.