Europe investigates Facebook takeover of Kustomer
The European Commission announcement the opening of an in-depth investigation into the takeover of Kustomer by Facebook. It is a start-up specializing in customer service. The announcement of the takeover dates back to last November, but it still has not received the green light.
“The Commission is concerned that the proposed transaction will reduce competition in the market for the supply of customer relationship management software”, explained the executive in a statement concerning the takeover of Kustomer by Facebook. “The Commission is also concerned that the proposed transaction will further strengthen Facebook’s position in the online display advertising market by increasing the already significant amount of data Facebook already has to personalize the ads it displays”, he added.
The press release from the European Commission is clear: its aim is to ensure that the takeover “Will not harm businesses or consumers and that the data to which Facebook has access does not distort the competition”, explains Margrethe Vestager, the European Commissioner for Competition.
Facebook informed the Commission last June of this project valued at $ 1 billion, defending its innovative nature for businesses and consumers. The Commission now has 90 working days, i.e. until 22 December 2021, to take a decision.
Ten national authorities (including Austria, at the origin of the initiative) had asked the European executive to investigate the operation, which does not reach the financial thresholds provided by the European Union. But anxious to preserve competition, Europeans have become very vigilant about the appetite of large companies for start-ups.
