Zuckerberg hit with a sucker punch.
Facebook was fined €110m on Thursday by the European Union competition regulators for giving misleading information during the vetting of its deal to acquire the messaging service, WhatsApp in 2014.
The European Commission said it was a “proportionate and deterrent fine” which they hoped would send a clear message out that all firms must comply with EU competition rules.
When Facebook took over the WhatApp service three years ago, it stated to the Commission that it would not be able to match user accounts from across the two platforms.
But in 2016, they created a service which did just that.
The Commission also found evidence that insisted when the sale was made, the Facebook staff knew that it was technically possible to link WhatsApp phone numbers with Facebook users’ identities, contrary to their public statements about the merger.
In a statement after the ruling, Facebook said: “Today’s announcement brings this matter to a close” and also stated that the errors were not intentional and noted that the Commission confirmed these submissions had not changed the outcome of the merger inquiry.
The Commission said it had taken into account the company’s cooperation during the inquiry.
But, the fine could have been over double the size of the final figure as the authorities are able to fine rule-breaking companies 1% of their annual turnover, which for Facebook was nearly €250m in 2014.
EU Competition Commissioner, Margrethe Vestager said:
“Today’s decision sends a clear signal to companies that they must comply with all aspects of EU merger rules, including the obligation to provide correct information.
The Commission must be able to take decisions about mergers’ effects on competition in full knowledge of accurate facts.”
The European Commission stressed the latest fine was unrelated to national antitrust inquiries. The German cartel office is investigating whether Facebook is abusing its dominant position by failing to inform people about how their personal data is being used. Investigations are also under way in Belgium, the Netherlands and Spain.
On Tuesday, Facebook was fined by a French data watchdog for failing to prevent users’ data being accessed by advertisers. The company were hit with a fine of €150,000.
Ireland is still awaiting its “windfall” after the Commission ordered Apple to pay €13bn in back taxes.
