Prior to its $19 billion acquisition by Facebook in February, WhatsApp promised subscribers three things: no ads, no games, no gimmicks. For the past five years, WhatsApp prided themselves on operating a simple, practical messaging service that protected user’s privacy by not accessing their data for advertising and profit-generating purposes. WhatsApp enjoyed enormous success under this model, drawing approximately 450 million subscribers since its introduction. Facebook’s acquisition of WhatsApp turned heads because of the stark contrast in how the two companies handle user privacy and data protection. Facebook is notorious for having a profit model built on accessing user data for monetary gain, and has become a figurehead for those opposing data collection practices in the wake of the NSA leaks.
On March 6, 2014, privacy advocate groups EPIC (Electronic Privacy Information Center) and CDD (Center for Digital Democracy) filed a complaint with the Federal Trade Commission to block the deal until Facebook provided further details on how it would use data acquired from WhatsApp subscribers. These groups are seeking a court order enjoining Facebook from implementing future changes to WhatsApp’s privacy policy, claiming that a change in the policy to advocate user data collection would be an unfair and deceptive business practice on the part of Facebook. The complaint states that, “WhatsApp users could not have reasonably anticipated that by selecting a pro-privacy messaging service, they would subject their data to Facebook’s data collection practices.”
Facebook has repeatedly assured that it will not change WhatsApp’s privacy policy and will allow WhatsApp to function as a separate business entity. However, Facebook made similar assurances following their $1 billion acquisition of Instagram in April 2012. Facebook then amended Instagram’s privacy policy and incorporated the data from Instagram users into their business profit model. It’s unclear whether WhatsApp can continue its success under the ownership of Facebook. Recent events have put user data collection under intense public scrutiny. With endless messaging alternatives available, WhatsApp’s continued future success may hinge on Facbeook’s management of user privacy.