Facebook’s Kustomer buy could face EU probe after merger referral



The European Union may investigate Facebook’s $1BN acquisition of customer service platform Kustomer after concerns were referred to it under EU merger rules.

A spokeswoman for the Commission confirmed it received a request to refer the proposed acquisition from Austria under Article 22 of the EU’s Merger Regulation — a mechanism which allows Member States to flag a proposed transaction that’s not notifiable under national filing thresholds (e.g. because the turnover of one of the companies is too low for a formal notification).

The Commission spokeswoman said the case was notified in Austria on March 31.

“Following the receipt of an Article 22 request for referral, the Commission has to transmit the request for referral to other Member States without delay, who will have the right to join the original referral request within 15 working days of being informed by the Commission of the original request,” she told us, adding: “Following the expiry of the deadline for other Member States to join the referral, the Commission will have 10 working days to decide whether to accept or reject the referral.”

We’ll know in a few weeks whether or not the European Commission will take a look at the acquisition — an option that could see the transaction stalled for months, delaying Facebook’s plans for integrating Kustomer’s platform into its empire.

Facebook and Kustomer have been contacted for comment on the development.

The tech giant’s planned purchase of the customer relations management platform was announced last November and quickly raised concerns (Read more...)