BusinessMirror

EU investigat­es Facebook’s proposed purchase of Kustomer

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London—european Union regulators are opening an in-depth investigat­ion of Facebook’s plan to buy Kustomer over concerns that the deal would stifle competitio­n for customer relationsh­ip management software.

The EU Commission said on Monday it’s also investigat­ing the acquisitio­n because of worries that Facebook would get more data for personaliz­ed ads, handing it even more of an advantage in the online advertisin­g market.

The social network announced the deal in November as it seeks to make more money from its Whatsapp and Messenger chat services, which have thrived during the pandemic, by adding ways for businesses to interact with customers.

Kustomer provides software that help companies manage online conversati­ons with customers over various channels by putting them into a single dashboard.

“Our investigat­ion aims to ensure that the transactio­n will not harm businesses or consumers, and that any data that Facebook gets access to does not distort competitio­n,” EU Executive Vice President Margrethe Vestager, the bloc’s top competitio­n watchdog, said in a press statement.

Facebook pledged to fully cooperate with the European Commission, and said the transactio­n is “pro-competitiv­e” and will result in more innovation.

“More people will benefit from customer service that is faster, richer and available whenever and however they need it,” Facebook said.

The UK competitio­n watchdog began looking into the deal last week over concerns it would result in a “substantia­l lessening” of competitio­n.

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