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WhatsApp To Share User Data with Facebook
Instant messaging service WhatsApp has announced it will share user information with its parent company Facebook, whose corporate advertising clients can use it to improve their ad targeting.
Facebook paid $19bn for WhatsApp in February 2014, citing its success in 'engaging' users and suggesting it was 'on a path to connect 1 billion people' (at the time it had 420m users and was adding 1m a day). WhatsApp's founders however had always expressed a strong aversion to advertising, and believed that if they got everything else right and produced a service that made users' lives better, 'we knew we could do what most people aim to do every day: avoid ads'. The pair went as far as quoting Tyler Durden, from the film 'Fight Club': 'Advertising has us chasing cars and clothes, working jobs we hate so we can buy sh*t we don't need'. At the time of the acquisition, analysts questioned how Facebook, with its advertising-centric business model, would monetise its new subsidiary without compromising these ideals.
Now WhatsApp's blog says it will pass data along to its parent as part of its commitment to giving users the 'most reliable experience', adding: 'By coordinating more with Facebook, we'll be able to do things like track basic metrics about how often people use our services and better fight spam on WhatsApp... And by connecting your phone number with Facebook's systems, Facebook can offer better friend suggestions and show you more relevant ads if you have an account with them'. Whilst promising users that their 'phone numbers will not be sold or shared, the statement suggests: 'We want to explore ways for you to communicate with businesses that matter to you too, while still giving you an experience without third-party banner ads and spam'.
Users can opt out of receiving targeted ads and friend suggestions, and can seemingly opt out of having their phone number shared between Facebook services. WhatsApp uses end-to-end encryption which means it can't see the content of users' messages, but US privacy groups have already expressed concern and at least one (EPIC) intends to request that the FTC stop the changes going forward. In the UK, Information Commissioner Elizabeth Denham says she will look into the legality of the changes, adding 'The changes WhatsApp and Facebook are making will affect a lot of people. Our role is to pull back the curtain on things like this, ensuring that companies are being transparent with the public about how their personal data is being shared, and protecting consumers by making sure the law is being followed'.
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