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Facebook wins conditional EU antitrust nod for Kustomer deal -Breaking


© Reuters. FILE PHOTO – A woman holding a smartphone sporting the Facebook logo is seen in front of an illustration taken on October 28th, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

By Foo Yun Chee

BRUSSELS – Facebook (NASDAQ 🙂 Thursday approved EU antitrust clearance for the acquisition of Kustomer, a U.S. startup that provides customer service. The company also offered rivals access for 10 years.

European Commission stated that the promise addressed competition concerns. Reuters last month reported that the agreement would be subject to EU approval.

Margrethe Vestager from the EU Antitrust Office stated that today’s decision will allow for innovative competitors and new entrants on the market of customer relationship management software.

Kustomer sells CRM software to companies so that they can talk with their customers via phone, email, SMS, WhatsApp and Instagram. Facebook would use Kustomer’s help to increase its WhatsApp instant messaging app, which saw usage rise during the COVID-19 pandemic.

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.

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