FTC approves Facebook's acquisition of WhatsApp, but warns both companies to uphold promises made
The promises made include one by WhatsApp indicating that nothing would change after the Facebook acquisition. "Here’s what will change for you, our users: nothing …. And you can still count on absolutely no ads interrupting your communication," said an email message to WhatsApp members following news of the $19 billion bid. Facebook CEO Mark Zuckerberg added, "We are absolutely not going to change plans around WhatsApp and the way it uses user data."
The letter from the FTC was sent to Erin Egan, Chief Privacy Officer at Facebook, and Anne Hoge, General Counsel at WhatsApp. In the letter, Rich wrote, "WhatsApp's hundreds of millions of users have agreed to use the WhatsApp service and to have WhatsApp collect and transmit their information, with the understanding that these promises will be honored."
WhatsApp members can rest easy, knowing that the FTC has their back in terms of holding Facebook and WhatsApp executives to their word. If WhatsApp wants to change their Terms of Service, the FTC says that it must give members a chance to opt out of any changes, or "at least make it clear to consumers that they have the opportunity to stop using the WhatsApp service."
You can read the letter from Ms. Rich in its entirety, below
source: FTC, Scribd via TechCrunch
1. MorePhonesThanNeeded (Posts: 645; Member since: 23 Oct 2011)
I feel odd not knowing what What's App is. Anyone can condense it into something that explains that absurd $19 Billion price tag.
5. Reluctant_Human (Posts: 867; Member since: 28 Jun 2012)
I think it would look more like this.
3. Anshulonweb (Posts: 368; Member since: 07 Feb 2014)
19 billion is alot of amount for software that has user base of 400 million...... considering that all these user Pay 1$ a year,it will take 40 years for Facebook to earn what they paid..... I think Facebook purchased Whatsapp not for revenue but for user data....the user data of so many users is worth billions for agencies like NSA
4. Reluctant_Human (Posts: 867; Member since: 28 Jun 2012)
It's unencrypted, meaning the NSA already owns that data.