EU is considering acquisitions of companies with a lot of data to take a closer look
The European Union is considering rules for the approval of business acquisitions involving the transfer of user data. That acquisitions are possible under the microscope of the mededingingsorgaan.
The existing trade-offs that the EU is making mergers and acquisitions target may be low on the amount of users or the customer information involved. That said the European commissioner Margrethe Vestager for Competition, reports The Hill.
The European body approves acquisitions by large companies, to ensure that there is enough competition in the sector continues. We primarily look at sales and profits.
But there are also companies bought up because of the quantity or quality of the information they possess. There, the EU is now to low visibility.
“A company can be a competitor to buy up, solely because of the data”, said Vestager. “Even if that company is still no way has been found to that data in money to convert.”
“We see, therefore, whether we have to consider the acquisitions, which is valuable information, even if the company that that data does not have a big turnover.”
The European Union is investigating the takeover of Microsoft by LinkedIn already. Those two companies have a large sales, but Microsoft will also get in one time a lot of user data in hands.
Furthermore, there is more and more attention is paid to the way in which companies deal with personal information. So there is a lot of criticism on the sharing of information of WhatsApp with parent company Facebook.