Meta, formerly known as Facebook, is set to gain EU antitrust approval for its acquisition of Kustomer after introducing measures that would allow rival products to work with its own. American customer service startup, people familiar with the matter said.
A wave of startup acquisitions by big companies has caused concern on both sides of the Atlantic, with regulators worried about so-called killer acquisitions aimed at taking down potential competitors before they are large enough to pose a threat.
Of the world biggest social network announced the deal in November 2020, which will give it another tool to attract more sellers to its platforms.
Kustomer, which sells CRM software to businesses so they can communicate with consumers via phone, email, text messaging, WhatsApp, Instagram and other channels, would be helpful. Meta extend its instant messaging app WhatsApp, has seen usage skyrocket in time COVID-19 Disease.
Meta has come up with remedies that focus on interoperability issues that allow different products and technologies to work together, one of the people said.
The European Commission, has said the deal could hurt competition and strengthen Meta’s power in the online sector. advertisement, it said it then sought feedback from competitors and users.
The EU executive took over the case at the request of the Austrian competition authority, although the deal fell below the EU turnover threshold. The watchdog is using a rarely used power known as Article 22 which gives the watchdog discretion.
The EU’s competition enforcement agency, which is expected to decide on the deal on January 28, declined to comment.
“This deal will increase competition and bring more innovation to businesses and consumers in the dynamic and competitive CRM and business messaging spaces,” said Meta.
Last week, the German cartel office informed Meta to seek approval for the deal, which has already been green-lit in the UK and Australia.
© Thomson Reuters 2021
