A PYMNTS Company

US: Facebook, WhatsApp deal likely to get easy antitrust pass

 |  February 20, 2014

Facebook is unlikely to face any significant antitrust scrutiny from officials over its $19 billion acquisition of mobile messaging system WhatsApp, a deal announced Wednesday, say reports.

The agreement reportedly involves a $2 billion breakup fee.

According to New York University School of Law professor Harry First, it would be “a stretch” for competition regulators to see competitive issues with the acquisition due to a diverse market for mobile applications. First noted that it would be simple to develop a competing, free messaging app like WhatsApp.

It is unclear whether the US Federal Trade Commission or the Department of Justice would review the deal, but reports say some experts are questioning why the companies agreed upon such a significant breakup fee as neither the FTC or DOJ are likely to block the merger.

Full Content: Bloomberg

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.