Facebook Gains FTC Approval for WhatsApp — Plus a Stern Privacy Warning

What's This?

This Wednesday, Feb. 19, 2014 photo shows the WhatsApp and Facebook app icons on an iPhone in New York. The FTC approved the deal but said it will keep an eye on the privacy terms of WhatsApp.

Image: Patrick Sison/Associated Press

By Jason Abbruzzese2014-04-10 18:43:59 UTC

Facebook cleared a major regulatory hurdle in its acquisition of WhatsApp on Thursday when the Federal Trade Commission approved the deal with a warning on privacy obligations.

The $19 billion deal will still need to gain approval from international regulators, but the OK from the FTC is an important step in the process of finalizing the acquisition.

See also: What's WhatsApp and Why Did Facebook Pay $16 Billion for It?

The FTC sent a letter to Facebook and WhatsApp outlining that Facebook will need to honor the customer privacy terms that the app currently has in place.

"In particular, and as discussed in more detail below, WhatsApp has made a number of promises about the limited nature of the data it collects, maintains, and shares with third parties - promises that exceed the protections currently promised to Facebook users," Jessica Rich, director of the Bureau of Consumer Protection at the FTC wrote in the letter. "We want to make clear that, regardless of the acquisition, WhatsApp must continue to honor these promises to consumers."

Facebook confirmed the approval. "We're pleased the FTC has completed its review and cleared our acquisition of WhatsApp," a Facebook spokeswoman wrote in a statement.

The FTC said it will keep an eye on the privacy practices at WhatsApp going forward.

"Hundreds of millions of users have entrusted their personal information to WhatsApp. The FTC staff will continue to monitor the companies' practices to ensure that Facebook and WhatsApp honor the promises they have made to those users," the letter concluded.

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Topics: Facebook, WhatsApp?