FB takes first step towards making money from WhatsApp deal

 

Bloomberg

Facebook Inc. is laying the groundwork for its free messaging service WhatsApp to begin making money, easing its privacy rules so data can be used for Facebook advertising and allowing businesses to message its more than one billion users. It’s the first step toward monetizing the platform since the social network’s Chief Executive Officer Mark Zuckerberg paid $22 billion for the app in 2014.
WhatsApp announced the change to its terms of service policy today. It allows businesses to communicate with users, including appointment reminders, delivery and shipping notifications and marketing pitches. In a corresponding blog post, WhatsApp said it will be testing the features over the
coming months.
The policy shift may help WhatsApp generate
revenue, but also could irk users drawn to its
strong stance on privacy. After it agreed to be purchased by Facebook in 2014, co-founder Jan Koum pledged the deal wouldn’t change how the company handles user data. Now WhatsApp says it will begin sharing more information about its customers with the “Facebook family.”
The data, including a person’s phone number, could be used to better target ads when browsing Facebook or Instagram, WhatsApp said.

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