Facebook-WhatsApp deal may face detailed CCI scrutiny

SUMMARYFacebook's USD 19 billion deal (Rs 1,16,000 crore) to acquire WhatsApp may face a detailed scrutiny by the country's fair trade regulator CCI, especially since both players have significant presence in India.

Fcebook's USD 19 billion deal (Rs 1,16,000 crore) to acquire WhatsApp may face a detailed scrutiny by the country's fair trade regulator CCI, especially since both players have significant presence in India.

The world's largest social networking site Facebook has around 1.2 billion members globally while WhatsApp – a platform that allows exchange of messages and files through mobile phones free of cost -- is estimated to have 450 million users worldwide.

All merger and acquisition deals, involving companies having India presence, have to get approval from the Competition Commission of India (CCI) which has the mandate to keep a tab on unfair trade practices at the market place.

A senior official said the Commission is yet to receive an application seeking approval for the deal, but it would indeed face an elaborate scrutiny.

Both Facebook and WhatsApp have substantial number of customers in India and they may soon file a notice with CCI to seek its clearance for the deal.

While India has nearly 93 million Facebook users, the count of people using the popular WhatsApp service is around 40 million in the country.

Meanwhile, concerns are already being raised in certain quarters about privacy issues post deal. Privacy groups in the US have asked American fair trade regulator FTC to put the deal on hold and probe how the social media giant plans to use subscriber data.

US-based Electronic Privacy Information Center (EPIC) and the Center for Digital Democracy (CDD) have asked the Federal Trade Commission to investigate WhatsApp and enjoin its "unfair and deceptive data collection practices" for anyfuture changes to its privacy policy.

Announcing the deal to acquire WhatsApp last month, Facebook said it would help accelerate growth and user engagement across both companies.

As per the deal, Facebook would shell out USD 16 billion, including USD 4 billion in cash and approximately USD 12 billion worth of shares for WhatsApp acquisition.

Besides, the social networking major would provide additional USD 3 billion in restricted stock units to WhatsApp's founders and employees that would vest over four years subsequent to closing.

News Source: hwww.financialexpress.com

Posted by Editorial Team on 4:48 AM in CCI scrutiny, EPIC, Facebook, globally, largest social, official, USD 19 billion, WhatsApp, world's, Worldwide

Apple's 'iOS in the Car' technology to roll out next week, says report

Ferrari, Mercedes-Benz, and Volvo are aboard for the launch of the operating system, which lets drivers access various iPhone functions through a car's built-in screen, says a report.

Apple VP Eddy Cue shows off iOS in the Car at WWDC 2013.

Apple's "iOS in the Car" operating system, which would let drivers access various iPhone functions through a car's built-in screen, is set to head out of the garage next week, says a report.

Ferrari, Mercedes-Benz, and Volvo are the automakers on board for the launch, says the Financial Times, which cited unnamed sources in reporting that the official announcement will take place at the Geneva Motor Show. The FT said neither Apple nor the carmakers would comment.

Apple talked up iOS in the Car at its Worldwide Developers Conference last year, with VP Eddy Cue -- a Ferrari board member -- showing a mock-up of a car's LCD with Apple menu buttons for maps, phone, music, and messaging. Cue said the functions could be accessible via Siri as well. Many cars already include integration with iOS music functions. Cue said Chevrolet, Ferrari, Honda, Jaguar, Mercedes, Nissan, Volvo and others would be introducing iOS integration this year.

Beyond smartphones, "the bigger opportunity for Apple and its ecosystem is becoming essential not just for people texting, checking news, watching movies, and playing games, but for massive growth areas such as transportation, home automation, and health care," CNET's Dan Farber noted last week, following a report that Apple's head of mergers and acquisitions had met with Elon Musk, CEO of electric-car maker Tesla, in 2013.

Apple's rivals are also aware of those opportunities. The Wall Street Journal reported in December that Google had teamed up with Audi to develop in-car entertainment and information systems based on its Android OS. And, of course, on the home automation front, Google is set to buy Nest for $3.2 billion.

Here's Eddy Cue talking about iOS in the Car at last year's WWDC:

News Source: news.cnet.com

Posted by Editorial Team on 3:09 AM in $3.2 billion, Apple's, Car, car's LCD, drivers, Ferrari, Mercedes, next week, Volvo, Worldwide