Facebook accused of misleading EU in Whatsapp takeover

The European Commission is accusing Facebook of providing incorrect or misleading information during the Commission's investigation into its merger with WhatsApp back in 2014, opening the company to a possible fine of 1% of its turnover. It centers around the fact that Facebook told the Commission that it would be unable to reliably automate matching between separate accounts on the messaging app and the social network.

"Companies are obliged to give the Commission accurate information during merger investigations. They must take this obligation seriously," Ms Vestager, the European Union's Competition Commissioner, said.

And she addded: "Our timely and effective review of mergers depends on the accuracy of the information provided by the companies involved. In this specific case, the Commission’s preliminary view is that Facebook gave us incorrect or misleading information during the investigation into its acquisition of WhatsApp. Facebook now has the opportunity to respond."

Facebook has until January 31 to respond. If the Commission’s concerns are confirmed it can impose a fine on the U.S. company of up to 1% of turnover. Companies fined can appeal to the European Court of Justice, which has overturned some penalties in the past.

The company changed WhatsApp's privacy policy in August, allowing data including phone numbers and device information to be shared. The data can be used to target adverts, fight spam and suggest friends.

“We respect the Commission’s process and are confident that a full review of the facts will confirm Facebook has acted in good faith, a Facebook spokeswoman said.