European Union: EC approves acquisition of Kustomer by Meta (Facebook)

On 27 January 2022, the European Commission approved the acquisition of Kustomer by Meta (previously Facebook). The transaction was authorised based on several conditions. In the following 10 years, Meta will have to provide non-discriminatory access to its messaging channels’ programming interfaces and make available the updated functionalities and versions of its messaging applications to Kustomer’s rivals. In addition, a trustee will be appointed to monitor if the outlined conditions are respected and a dispute resolution mechanism will be created to allow third parties to bring forward complaints. The Commission previously initiated an in-depth investigation into the merger on 2 August 2021. Kustomer provides software for customer relationship management (CRM) which allows businesses to engage with customers more efficiently. Meta owns the messaging channels Messenger, Instagram and WhatsApp that are used in customer services and CRM software. The investigation aimed to determine if the transaction would negatively impact competition, as Meta would be able to limit the access of Kustomer’s rivals to its messaging channels. Furthermore, it was stated, that the proposed acquisition could also lead to Meta receiving more data which would give the company an even bigger competitive advantage in the online display advertising market.