Meta is expected to win a conditional EU approval for the Kustomer purchase


According to people familiar with the situation, Meta, formerly known as Facebook, is set to receive EU antitrust approval for its acquisition of Kustomer after offering remedies that allow rival products to work with those of the U.S. customer service startup.

Big companies' acquisition spree of startups has raised concerns on both sides of the Atlantic, with regulators concerned about so-called killer acquisitions aimed at shutting down potential competitors before they grow large enough to be a threat.

The deal, which will give the world's largest social network another tool to attract more sellers to its platforms, was announced in November 2020.

Kustomer, a company that sells CRM software to businesses so they can communicate with customers via phone, email, text messages, WhatsApp, Instagram, and other channels, would assist Meta in scaling up its instant messaging app WhatsApp, which has seen a spike in usage during the COVID-19 pandemic.

According to one of the people, Meta has provided solutions that focus on interoperability issues, allowing different products and technology to work together.

According to them, the European Commission sought feedback from competitors and users after warning that the deal could harm competition and increase Meta's power in online advertising.

Despite the fact that the deal is below the EU turnover threshold, the EU executive took up the case after the Austrian competition agency requested it. Article 22, a rarely used power that gives the watchdog some discretion, is being used by the watchdog.

"In the dynamic and competitive CRM and business messaging spaces, this deal will increase competition and bring more innovation to businesses and consumers," Meta said.

The German cartel office told Meta last week to seek its approval for the deal, which has already been approved in the United Kingdom and Australia.

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