By Foo Yun Chee

BRUSSELS (Reuters). -Facebook has been granted EU antitrust approval in connection with its purchase of Kustomer. The remedy offered by Facebook allows rival products to be used with U.S. customer services startup.

Regulators on both sides have expressed concern about the buying frenzy of startups by large companies. They are concerned about potential killer acquisitions that could shut down rivals before they become a serious threat.

This deal, announced by the largest social network in the world, was made public November 2020. The company hopes to use this tool to increase its seller base.

Kustomer sells CRM software to companies so that they can communicate by phone and text messages with consumers. It would also help Facebook (NASDAQ 🙂 increase its instant messaging app WhatsApp. WhatsApp usage has soared during the COVID-19 outbreak.

One person said that Facebook had offered solutions which focused on interoperability, allowing technology and products to work together. 

Following the European Commission’s statement that the agreement could harm competition and increase Facebook’s strength in online advertising, they sought input from competitors and users.

After being asked by the Austrian Competition Agency, the EU executive took the case. Despite the fact that the agreement falls under the EU turnover threshold. The watchdog is using a rarely used power known as Article 22 that gives it some discretion.

The EU Competition Enforcementr is expected to make a decision on the agreement by January 28th. However, they declined to comment. 

Facebook claimed that this deal “will increase competition, bring more innovation to consumers and businesses in the dynamic CRM and business messaging areas.”

Facebook was notified by the German cartel office last week to approve the deal. The agreement has been approved in Britain and Australia.