Facebook could face a $179 million fine for allegedly misleading the European Commission about its WhatsApp acquisition.
In a Statement of Objections, the EU expressed concerns that Facebook provided incorrect data about the deal—deliberately or out of negligence.
Upon notifying the Commission in August 2014 of its planned transaction, the social network indicated it would be unable to automatically match user accounts across the merging companies—potentially impeding competition.
Two years—and various technological advances—later, Facebook determined how to link accounts across its family of services to improve product and security features. WhatsApp subsequently updated its terms of service and privacy policy to reflect the new ability.
As a result, the Commission believes that, contrary to Facebook's initial statements during the merger review, the technical possibility to automatically match user IDs "already existed in 2014."
"Companies are obliged to give the Commission accurate information during merger investigations. They must take this obligation seriously," Commissioner Margrethe Vestager said in a statement. "Our timely and effective review of mergers depends on the accuracy of the information provided by the companies involved."
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Facebook has until Jan. 31 to respond to the Statement of Objections, and could face charges up to 1 percent of its turnover—about $179.3 million, based on the company's 2015 total revenue.
"We respect the Commission's process and are confident that a full review of the facts will confirm Facebook has acted in good faith," a company spokesman told PCMag in a statement. "We've consistently provided accurate information about our technical capabilities and plans, including in submissions about the WhatsApp acquisition and in voluntary briefings before WhatsApp's privacy policy update this year.
"We're pleased that the Commission stands by its clearance decision, and we will continue to cooperate and share information officials need to resolve their questions," he added.