Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nasdaq  >  Facebook Inc    FB

News SummaryMost relevantAll newsSector newsTweets 
The feature you requested does not exist. However, we suggest the following feature:

Facebook : EU Taking Second Look at Past Deals -- WSJ

share with twitter share with LinkedIn share with facebook
share via e-mail
03/25/2017 | 07:48am CEST
By Natalia Drozdiak 

BRUSSELS -- The European Union's antitrust chief said Friday that her department is reviewing a handful of recent merger clearances on suspicions companies misled investigators in securing approval.

The unusual reassessment could lead to formal charges and ultimately significant fines for the companies or -- though highly unlikely and complicated -- withdrawal of clearances.

In similar circumstances, the regulator leveled charges in December against Facebook Inc. In that case, the EU accused the social-media company of giving incorrect or misleading information to regulators reviewing its planned purchase of chat app WhatsApp in 2014. Facebook said it provided accurate information to the EU about its plans and technical capabilities.

In an interview, Margrethe Vestager said the European Commission, the EU's antitrust regulator, was scrutinizing instances in which company representatives from a range of industries intentionally or negligently misinformed regulators studying proposed mergers.

"In each and every individual case...we need correct information, in order to have the very high quality of our casework that we want to have, " Ms. Vestager said. "We have found in more than one case that there was a case of misleading information."

The EU declined to identify the companies under the microscope but indicated the cases involve merger reviews that took place within the past five years. The commissioner said the EU was still deciding whether to file formal accusations outlined in what is called a statement of objections.

If found guilty in such cases, companies face fines of up to 1% of global revenue. In an unlikely scenario, the EU could also revoke its clearance of the merger if more accurate information could have led to a different decision.

The EU has already said its case against Facebook won't affect its clearance of the WhatsApp deal, which closed in 2014.

The commission suspects Facebook inaccurately claimed during the review in 2014 that it couldn't routinely match Facebook and WhatsApp user accounts -- something the company started doing two years later when it began combining user data across the services. The antitrust regulator is currently analyzing Facebook's response to the accusations, Ms. Vestager said.

Such cases are rare in Europe given the threat of fines and other sanctions. Lawyers representing companies in the merger-review process can also be stripped of their licenses to practice law if they are found to have intentionally misled regulators. The EU said that prior to the Facebook case it hadn't pursued such action since new rules that boosted fines came into effect in 2004.

Ms. Vestager said the commission over the past year looked at several cases involving misleading information, but that they wouldn't all necessarily be formally opened or decided upon as a package.

"We have to respect the flow of each individual case, even in these areas where it's procedural concerns that we have," she said.

In the interview, the EU antitrust chief spoke about its three open cases against Alphabet Inc.'s Google, including one in which the EU has accused Google of skewing its online search results to favor its comparison-shopping service. Google rejects the EU's accusations in all three cases.

On the shopping case, Ms. Vestager said the EU was approaching "a final phase" of its investigation, adding that any decision against Google likely would involve remedies that are "future-proof" and therefore likely broader in scope.

"Instead of being specific on page design or screen design, I think it's very important [for us] to focus on how to allow competition," she said. "If you're very specific about what design, you may very quickly be caught up in time."

In a statement sent last year setting out its charges against Google in the shopping case, the EU sketched out ways Google should change its business practices to assuage the bloc's antitrust concerns.

"Remedies may require Google to position and display competitors' comparison shopping services in the same way as it positions its own comparison shopping service in general search results," the EU shopping charge sheet said.

The EU also has formally accused Google of violating the bloc's rules by abusing its dominance with its Android mobile-operating system as well as its advertising service Adsense.

Write to Natalia Drozdiak at natalia.drozdiak@wsj.com

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on FACEBOOK INC
03/25DJFACEBOOK : EU Taking Second Look at Past Deals -- WSJ
03/24 Levi & Korsinsky, LLP Reminds Investors of Facebook, Inc. of a Class Action L..
03/24DJFACEBOOK : EU Antitrust Chief Says Handful of Companies May Have Misled Regulato..
03/24 FACEBOOK : unveils a new ad format — product-focused ‘collection&rsq..
03/24 ALPHABET : Cambodia's 'Buzzfeed' Attracts Silicon Valley Investment
03/24 YouTube's bid to grab TV dollars imperiled by advertiser revolt
03/23 PFIZER : Girl in Facebook Live hanging was prescribed drug with suicide warning
03/23 MOBILE PAYMENTS TODAY : February's best reads
03/23 INVESTORS : Stock Option Reports for Covered Call reports for Facebook, General ..
03/23 VERIZON COMMUNICATIONS : Senate votes to undo privacy rules that protect user da..
More news
Sector news : Social Media & Networking
03/25DJFACEBOOK : EU Taking Second Look at Past Deals -- WSJ
03/24DJALPHABET : YouTube Continues Showing Brands' Ads With Objectionable Videos -- Up..
03/24DJFACEBOOK : EU Antitrust Chief Says Handful of Companies May Have Misled Regulato..
03/24 Infineon raises 2017 outlook on stronger automotive orders
03/24 EXCLUSIVE : HSBC to boost China staff by up to 1,000 in 2017, mostly in Pearl Ri..
More sector news : Social Media & Networking
News from SeekingAlpha
03/26 TWITTER : The Benefit Of Subscription Fees
03/26 PayPal Is Standing On The Edge Of A Cliff
03/26 The Only Real Facebook Metric We Need To Watch
03/24 The View From The Top
03/24 CASH FLOW VS. EARNINGS VALUATION : A Line Up Of Tech Companies
Financials ($)
Sales 2017 37 843 M
EBIT 2017 21 066 M
Net income 2017 12 818 M
Finance 2017 37 114 M
Yield 2017 -
P/E ratio 2017 31,81
P/E ratio 2018 24,76
EV / Sales 2017 9,74x
EV / Sales 2018 7,35x
Capitalization 405 580 M
More Financials
Duration : Period :
Facebook Inc Technical Analysis Chart | FB | US30303M1027 | 4-Traders
Full-screen chart
Technical analysis trends FACEBOOK INC
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus OUTPERFORM
Number of Analysts 46
Average target price 160 $
Spread / Average Target 14%
Consensus details
EPS Revisions
More Estimates Revisions
Mark Elliot Zuckerberg Chairman & Chief Executive Officer
Sheryl Kara Sandberg Chief Operating Officer & Director
David M. Wehner Chief Financial Officer
Michael Todd Schroepfer Chief Technology Officer
Atish Banerjea Chief Information Officer
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
FACEBOOK INC21.98%405 580
TWITTER INC-7.12%11 005
LINE CORP2.00%8 035
SINA CORP20.20%5 179
MATCH GROUP INC-7.13%4 065
More Results