A buying spree of startups by big companies has triggered
concerns on both sides of the Atlantic, with regulators worried about so-called
killer acquisitions aimed at shutting down potential rivals before they are big
enough to be a threat.
The world's largest social network announced the deal in
November 2020, which would give it another tool to attract more sellers to its
platforms.
Kustomer, which sells CRM software to businesses so they can
communicate with consumers by phone, email, text messages, WhatsApp, Instagram
and other channels, would help Meta scale up its instant messaging app
WhatsApp, which has seen usage soar during the COVID-19 pandemic.
Meta has given remedies which focus on interoperability
issues allowing different products and technology to function together, one of
the people said.
The European Commission, which has said the deal could hurt
competition and boost Meta's power in online advertising, subsequently sought
feedback from rivals and users, they said.
The EU executive took up the case after the Austrian
competition agency asked it to, even though the deal falls below the EU
turnover threshold. The watchdog is using a rarely used power known as Article
22 that gives it some discretion.
The EU competition enforcer, which is scheduled to decide on
the deal by Jan. 28, declined to comment.
Meta said: "This deal will increase competition and
bring more innovation to businesses and consumers in the dynamic and
competitive CRM and business messaging spaces."
Last week, the German cartel office told Meta to seek its approval for the deal, which has already received the green light in Britain and Australia. © Reuters
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