Facebook’s deal of WhatsApp

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Facebook announced its deal of WhatsApp, the Internet messaging service, for $19 billion, which is approved by Europe’s competition authorities.

Some people doubt that if the deal would make the association of Facebook and WhatsApp a monopoly among the messaging and voice businesses. The expenditure of using WhatsApp is very cheap. Besides, people fear that the combination of the data from Facebook Messenger and WhatsApp will enlarge the number of consumers, thus leading to the monopolistic status of WhatsApp. 

However, it is claimed that the deal will not bound competitions in the dynamic and growing market in that there are still a wide range of communications apps for consumers to choose from. Moreover, Facebook Messenger and WhatsApp are not close competitors. 

In this way, the deal could provide users of Facebook with more convenience in chatting. It will encourage people to use the app more often and improve the influence of Facebook among the social network apps. The profit the deal earns may contribute to further development of more advanced technology. 

 

 

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