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Meta Said to Win Conditional EU Nod for Kustomer Buy

by Muhammad Asad
March 23, 2022
in news
0

According to sources familiar with the situation, Meta, formerly known as Facebook, is expected to receive EU antitrust clearance for its purchase of Kustomer after proposing remedies that allow competitor products to work with those of the U.S. customer support business.

Big firms’ purchase binge of startups has raised worries on both sides of the Atlantic, with authorities concerned about so-called killer deals aimed at shutting down prospective competitors before they become large enough to be a danger.

The transaction, which will provide the world’s largest social network another tool to entice more vendors to its platforms, was announced in November 2020.
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Kustomer, a company that offers CRM software to businesses so they can engage with customers via phone, email, text messages, WhatsApp, Instagram, and other channels, would assist Meta in scaling up its instant messaging service WhatsApp, which has witnessed a spike in usage during the COVID-19 epidemic.

According to one of the persons, Meta has provided solutions that focus on interoperability difficulties, allowing diverse products and technologies to work together.

According to them, the European Commission sought comments from competitors and users after warning that the transaction may harm competition and increase Meta’s clout in online advertising. Despite the fact that the deal is below the EU turnover level, the EU executive took up the matter when the Austrian competition office requested it. Article 22, a seldom utilized power that provides the watchdog considerable discretion, is being exploited by the watchdog.
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The European Commission’s competition authority, which is expected to make a decision on the merger by January 28, has declined to comment.

“In the dynamic and competitive CRM and business communications areas, this agreement will promote competition and bring more innovation to businesses and customers,” Meta added.

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

Muhammad Asad

Muhammad Asad

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