Posted Jan 27, 2022, 6:45 PM
When they want, the Gafam and Europe know how to get along. On Thursday, the European Commission announced that it had given the green light to the acquisition by Meta (Facebook) of the American start-up Kustomer, which specializes in customer relationship management (CRM). Less than a year following the launch of an in-depth investigation, this favorable and rapid outcome was possible thanks to the safeguards that Mark Zuckerberg’s group agreed to concede.
Monitor start-ups
Anxious to reinvigorate online competition, Europeans have become very vigilant regarding the appetite of big companies for start-ups and unicorns. “We need to carefully consider transactions that might further strengthen the big players who increasingly dominate the digital economy, regardless of the size of the target company,” Competition Commissioner Margrethe Vestager said on Thursday. This takeover of Kustomer by Meta, estimated at more than 800 million euros, was one of the first symbols of this desire to monitor Gafam purchases like milk on fire.
Messaging channels
Brussels had opened an investigation in the spring, explaining then fears that Facebook would thus lock the CRM market. “The commitments offered by Meta guarantee that its competitors will continue to have free and comparable access to its important messaging channels”, such as WhatsApp, Messenger or Instagram, European Commissioner for Competition Margrethe Vestager explained on Thursday. A representative will be appointed to monitor the implementation of the commitments, she said. It will have “extensive powers”, including “access to Meta’s records, personnel, facilities or technical information”.
Always more data
Brussels also feared, and above all, an excessive strengthening of Meta on the online display market with the contribution of data from Kustomer. The Commission’s investigation is ultimately reassuring: this additional data “would not have a significant negative impact on competition between providers of online display services”.
“We are pleased that the European Commission has authorized the merger with Kustomer,” responded a spokesperson for Meta. According to him, “It shows” that the operation will “create more choice” for users. Meta defended this project with Brussels on behalf of the innovation potential for companies and consumers.