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Meta closes Kustomer deal after regulatory approval

Published - February 16, 2022 09:57 am IST

Kustomer sells CRM software to businesses so they can communicate with consumers by phone, email, text messages, WhatsApp, Instagram and other channels.

FILE PHOTO: 3D-printed images of logos of Facebook parent Meta Platforms and of Facebook are seen on a laptop keyboard in this illustration taken on November 2, 2021. | Photo Credit: Reuters

Meta Platforms Inc said on Tuesday it had closed its acquisition of Kustomer, a U.S. customer service startup, after winning conditional EU antitrust approvalfor the deal last month.

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The purchase was first announced in November 2020 but got delayed due to regulatory scrutiny including a full-scaleinvestigation from the European Commission.

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The probe came amid regulatory concerns on both sides of the Atlantic that a buying spree of startups by big firms may be so-called killer acquisitions aimed at closing down nascent rivals.

Meta, formerly known as Facebook, secured EU approval after agreeing to provide rivals free access to its messaging channels for 10 years.

Also Read | Explained | Why is the U.S. readying new rules for the tech giants?

Kustomer sells CRM software to businesses so they can communicate with consumers by phone, email, text messages, WhatsApp, Instagram and other channels. Its takeover would help Facebook scale up its instant-messaging app WhatsApp, whose usage has soared during the COVID-19 pandemic.

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