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AppId is over the quota
AppId is over the quota
With FTC approval granted in April, the approval in Europe means the deal should finally wrap up soon.

CNET

Facebook has received the thumbs-up in Europe to acquire messaging app WhatsApp.

The $19 billion takeover of WhatsApp is the biggest in Facebook's history and received approval in Europe seemingly with little concern that the company and its apps might pose problems for the competition, Reuters reported Friday.

"Consumer communications apps keep European citizens connected and are becoming increasingly popular," European Competition Commissioner Joaquin Almunia said in a statement. "While Facebook Messenger and WhatsApp are two of the most popular apps, most people use more than one communications app. We have carefully reviewed this proposed acquisition and come to the conclusion that it would not hamper competition in this dynamic and growing market. Consumers will continue to have a wide choice of consumer communications apps."

The European Commission also found that Facebook Messenger and WhatsApp are not close competitors. Further, even though Facebook Messenger is a standalone app, it requires a Facebook account and Facebook integration.

"Users seem to use the two apps in different ways and many of them use the two apps simultaneously on the same mobile handset," the EC said. "Furthermore, this is a very dynamic market with several competing apps available on the market, such as Line, Viber, iMessage, Telegram, WeChat, and Google Hangouts.

But WhatsApp has had its eye on more than just mobile messaging. The company reportedly plans to add free voice calling services to its app later this year, which could present a thorn in the side to European telecom firms such as Deutsche Telekom, Orange, and Telecom Italia, Reuters said. However, the EC didn't address this potential issue in its statement.

Meanwhile, Yahoo confirmed Friday that it has acquired the startup MessageMe, a service similar to WhatsApp. It will be shutting down the service, but MessageMe's eight members will join the company to work on on mobile communications products for Yahoo.

Yahoo also is reportedly in talks to invest in the popular messaging app Snapchat, drawing on the multibillion-dollar cash haul it got from last month's market debut of the e-commerce giant Alibaba.

The Facebook-WhatsApp deal had already received approval from the Federal Trade Commission this past April. But the FTC was more concerned about the arrangement, at least when it comes to privacy. Along with its approval, the agency included a letter cautioning both Facebook and WhatsApp that they continue WhatsApp's policy of not collecting usernames, locations, email address, or other data, and that the company not share users' phone numbers with third parties.

"We want to make clear that, regardless of the acquisition, WhatsApp must continue to honor these promises to consumers," Bureau of Consumer Protection Director Jessica Rich wrote. "Further, if the acquisition is completed and WhatsApp fails to honor these promises, both companies could be in violation of Section 5 of the Federal Trade Commission (FTC) Act and, potentially, the FTC's order against Facebook."

Both Facebook CEO Mark Zuckerberg and WhatsApp CEO Jan Koum said that WhatsApp's privacy policies would remain the same. But the FTC vowed to keep an eye on the two just to be sure.

"Hundreds of millions of users have entrusted their personal information to WhatsApp," Rich told Facebook and 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."

Europe traditionally takes a strong stance on the privacy of its citizens, but concerns over privacy didn't play much of a role in the Facebook-WhatsApp deal.

"In the context of this investigation, the Commission analysed potential data concentration issues only to the extent that it could hamper competition in the online advertising market," the EC said in its statement. "Any privacy-related concerns flowing from the increased concentration of data within the control of Facebook as a result of the transaction do not fall within the scope of EU competition law. Based on the above, the Commission therefore concluded that the transaction would raise no competition concerns."

With approval from both the US and Europe in place, the acquisition should now be able to go through without any obstacles. The deal is expected to close sometime in the next few months.

Commenting on the EC's regulatory approval, a Facebook spokeswoman told CNET that "we are pleased to have received clearance from the European Commission and look forward to closing the acquisition."

Lance Whitney Journalist, software trainer, and Web developer Lance Whitney writes columns and reviews for CNET, Computer Shopper, Microsoft TechNet, and other technology sites. His first book, "Windows 8 Five Minutes at a Time," was published by Wiley & Sons in November 2012. See full bio

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AppId is over the quota
AppId is over the quota
At the Paris Motor Show, Honda showed off its new Honda Connect head unit, an Android OS infotainment system that will roll out in the European versions of the CR-V and Civic.

The new Honda Connect system is built on the Android OS, and runs on an Nvidia Tegra3 chip. Wayne Cunningham/CNET

PARIS -- Along with a new CR-V model, Honda showed off its new Honda Connect infotainment system for the European market at the Paris Motor Show. The new system uses Nvidia's Tegra3 processor and runs on Google's Android software.

Demo units in the Honda booth space showed off the system with two different interfaces, one a traditional icon-based homescreen and the other a tile-based screen with a multi-colored background. Owners will be able to load whichever homescreen appeals to them, or potentially download new themes.

For navigation, the new Honda Connect comes with the Garmin Navigator app, with its familiar "Where to?" and Map icons front and center. Maps can appear in top-down or perspective views, while routing can take into account traffic.

Taking advantage of the underlying Android OS, the system lets owners download apps from the Honda App Store. The demo units included Aha and Aupeo Internet radio apps, and offered unbranded parking and fuel-price apps for download. Honda will approve which apps are available for download based on safety considerations. In addition, some apps will not operate if the car is moving, such as the Web browser built into the system.

The new Honda Connect system also comes with a Bluetooth hands-free phone system and typical audio sources. Tied into the car's own diagnostics, Honda Connect can show trip information.

This new version of Honda Connect is initially rolling out in the European versions of the CR-V and Civic, with information on rolling out the system to other regions as yet unannounced.

Click here for more CNET coverage of the 2014 Paris Motor Show

Wayne Cunningham Wayne Cunningham reviews cars and writes about automotive technology for CNET. Prior to the Car Tech beat, he covered spyware, Web building technologies, and computer hardware. He began covering technology and the Web in 1994 as an editor of The Net magazine. He's also the author of "Vaporware," a novel that's available as a Nook e-book. See full bio

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