The EU antitrust regulators launched a probe into Facebook’s acquisition of U.S. customer service startup Kustomer, warning it might hurt competition and boost its market power in online advertising.
- The move by the EU comes as regulators are concerned that the buying spree of startups by big corporations aims at closing down nascent rivals.
- Facebook, the world’s largest social network, announced the purchase of Kustomer to expand its instant messaging app WhatsApp in November last year.
- The EU executive stated the deal might result in Facebook blocking rivals’ access to its units WhatsApp, Messenger, or Instagram, which are key to customer relationship management software.
- Kustomer sells CRM software to enterprises so they can communicate with consumers via phone, email, text messages, Instagram, WhatsApp, and other social media channels.
The EU watchdog cited issues with Facebook’s ability to personalize and target online display advertising using Kustomer’s client data, giving them an edge over its rivals.
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Source: Reuters.
