The Strategist

UK watchdog to look into Facebook's purchase of Kustomer

08/02/2021 - 03:46

The UK Competition and Markets Authority (CMA) said it has launched a review of Facebook's takeover of customer relationship management (CRM) company Kustomer.

The watchdog intends to determine whether the deal will reduce competition in the UK market.

Facebook announced the purchase of Kustomer in November 2020, the terms of the deal have not been publicly disclosed. According to The Wall Street Journal's sources, the company was valued at $1bn. 

In late July, Reuters cited sources saying that the European Commission also intended to examine the deal. According to their information, a full-scale review will begin on August 2.

In June, the European Commission and the CMA launched a parallel and cooperative review of the Facebook Marketplace private classifieds service. 

The regulators are checking whether Marketplace's integration with the social network and the use of data from advertising networks and Facebook's built-in dating service violate antitrust laws.