Merger control: eu commission calls kustomer termination by facebook

Merger Control: EU Commission Calls Kustomer Termination by Facebook

The EU Commission was committed to the scheduled suppure of the New York start-ups Kustomer through Facebook "An incoming examination according to the EU Fusion Control Ordinance" to undergo. Above all, it greeted this to the fact that the project was massively restricted competition in the market for customer relationship management (Customer Relationship Management – CRM). In addition, according to the Brussels government institution, Facebook was allowed to further expand its already strong position on the market for online advertisements.

The company Kustomer’s 2015 company provides platforms for customer service and chatbots that can be used to answer customer inquiries automatically. Competition Commissarin Margrethe Vestager now mainly escapes that Facebook with the merger other market participants could deny access to his chat services WhatsApp, Messenger and Instagram for communication between companies and consumers.

Possible competitions

This suggested results of the promotion already made, it is called in Brussel. Such strategies were able to restrict competition in terms of CRM software and associated services and at high prices, lower quality and less innovation for business customers and negative consequences for consumers drove.

With the acquisition of the start-up, the operator of the social network, according to the Commission, also became more lighter to customer transaction data such as its order and purchase history as well as information on the online shops and edited wish lists. This could be a US Group one "significant advantage" Get around the switching of online banners. When Facebook is able to better personalize its prescribed advertising services as a result of a coarse data advantage, this became the competition weakly weak. High prices and a lower selection then ultimately harmed the advertisers and the publishers.

Killer acquisition

In the core, according to the Commission, it is threatened to take over, with which a company should be taken from the market or its technology. Cartetable buildings worldwide take such "Killer acquisitions", which could soon be prevented in the EU soon with the planned Digital Markets Act, currently understood in the view. So also the Bundeskartellamt, who wants to play a coarse role in this field, also plays the intended deal. Competitive Huter in the US, Australia and Great Britain also examine the case.

For the Commission, the project is usually not a topic, since the sales thresholds provided for under the EU Fusion Control Regulation did not reach. In Austria, Facebook had to register the plan for approval. At the beginning of April, the Alpen Republic submitted a reference request of the case to the Brussels Executive Instance. This joined Belgium, Bulgaria, France, Ireland, Iceland, Italy, the Netherlands, Portugal and Romania, which do not investigate the matter for themselves. A decision must now be spat at the latest on 22. December 2021 fall.

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