Privacy groups have approached the US Federal Trade Commission (FTC) to put on hold Facebook’s $19 billion acquisition of WhatsApp and investigate how the social media giant plans to use subscriber data.
FTC looks into market practices that are anticompetitive, deceptive or unfair to consumers.
The groups claimed that Facebook “routinely makes use of user information for advertising purposes and has made clear that it intends to incorporate the data of WhatsApp users into the user profiling business model.”
“The proposed acquisition will therefore violate WhatsApp users’ understanding of their exposure to online advertising and constitutes an unfair and deceptive trade practice, subject to investigation by the FTC,” the bodies said.
WhatsApp, a service that allows mobile phone users to exchange messages and files, has stated that it does not intend to collect user data for advertising purposes. It charges some subscribers a $1 annual usage fee. Facebook, the world’s largest social network with 1.2 billion members, gets a majority of its revenue from advertising targeted at users by age, gender and other characteristics.
EPIC requested the FTC to use its authority to “halt” the proposed acquisition and in case it proceeds, order Facebook to “insulate WhatsApp users’ information.”