Facebook will need to await clearance from EU competition authorities before it can complete its acquisition of Kustomer. The company had filed for competition clearance in Austria, but the country asked EU officials to take on the case. The European Commission agreed and is preparing to start a review of the acquisition.
While the deal does not meet turnover thresholds for EU vetting, the Commission may take up a case upon request from one of the EU member states, if they think it will affect competition in the internal market. Austria made such a request, and this was joined by Belgium, Bulgaria, France, Iceland, Italy, Ireland, the Netherlands, Portugal and Romania.
Facebook first announced the takeover in December 2020, saying US-based Kustomer's CRM software would help in efforts to expand e-commerce on the social network and its apps. The company reportedly paid around USD 1 billion for the takeover.
The Commission is concerned the takeover might affect competition in the markets for CRM software and online display advertising services. The Commission also concluded that it is best placed to examine the potential cross-border effects of the transaction. Facebook will be asked to notify the transaction to the Commission and cannot implement the acquisition without awaiting a decision.
