Facebook given EU go-ahead to pursue controversial Kustomer acquisition

27 Jan 2022

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The EU’s antitrust chief Margrethe Vestager said she was satisfied for the company now known as Meta to pursue its Kustomer acquisition after it struck a deal for rivals.

Meta, the company formerly known as Facebook, has secured antitrust approval from the EU to pursue its acquisition of US customer services software start-up Kustomer.

The social media giant’s decision to acquire the start-up attracted EU scrutiny last April, months before its rebrand. Then known as Facebook, the company planned to integrate Kustomer’s products, including a chatbot, into its service.

Future Human

Now, Meta has assured the European Commission that it will provide rivals free access to its messaging channels for 10 years.

The EU was satisfied that this addressed competition concerns which previously arose from the company’s decision to acquire Kustomer.

“Our decision today will ensure that innovative rivals and new entrants in the customer relationship management software market can effectively compete,” EU antitrust chief Margrethe Vestager said in a statement.

Last December, Vestager’s Digital Markets Act was passed by EU lawmakers as part of the body’s plans to tighten the monopoly large multinationals hold in Europe’s digital space.

Facebook had initially announced its acquisition plan in November 2020. In February 2021, the Irish Council for Civil Liberties wrote to the European Commission outlining its concerns over data that Kustomer had gathered and what might happen to that data under Facebook’s watch. The Commission also received a referral request from Austria flagging concerns over the Kustomer deal.

Other Meta acquisitions have also attracted the scrutiny of competition regulators. Last November, the UK ordered Meta to sell Giphy after its acquisition of the GIF making company was found to have breached competition rules. In the US, it is facing an antitrust suit that could force the company to sell WhatsApp and Instagram.

The EU’s decision to allow Meta to pursue the acquisition of Kustomer comes following a recent vote in the European Parliament in favour of the Digital Services Act, a companion of the Digital Markets Act. The act represents the EU’s attempt to shift the balance of power away from Big Tech in favour of ordinary people.

The long-debated act was hailed by Facebook whistleblower Frances Haugen as a “gold standard”.

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Blathnaid O’Dea is Careers reporter at Silicon Republic

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