European Union: EC opens in-depth investigation into Facebook's proposed acquisition of Kustomer

On 2 August 2021, the European Commission (EC) opened an in-depth investigation into Facebook's planned acquisition of Kustomer, a U.S. customer relationship management provider. On 12 May 2021, the investigation was opened after the EC received a referral request supported by several EU member states. The in-depth investigation was opened because of possible detrimental effects on competition in both the market for Customer Relationship Management (CRM) software. Furthermore, it was stated, that the proposed acquisition could also lead to Facebook receiving more data which would give the company an even bigger competitive edge in the online display advertising market. The EC was notified of the transaction by Facebook on 25 June 2021 and now has until 15 December 2021 to make a decision on the validity of the acquisition. The deadline was extended from 90 working days to 95 working days under Article 10(3)2 on 6 August 2021.