On December 17, people familiar with the matter said today that Meta (Facebook's parent company) acquisition of customer relationship management (CRM) company Kustomer will be approved by the European Union.
It is understood that Meta (Facebook's parent company) has made a series of concessions in order to obtain approval for the acquisition.
Back in December, Meta announced the acquisition of a customer relationship management (CRM) startup called "Kustomer".
Kustomer is a company that sells CRM software to businesses that helps users manage communication with customers through simple messages from phone calls, emails, messages, or messaging features in certain apps, such as WhatsApp or Messenger.
The startup's software creates a single interface for businesses to manage their online conversations with customers, and automates some interactions with the help of chatbots.
Meta did not disclose the financial terms of the transaction. However, according to the Wall Street Journal, the company was valued at about $1 billion in the deal.
In January, the acquisition came at a time when Meta was making a big push into online shopping. The social media giant launched a feature called Shops at the time, allowing businesses to turn their Facebook and Instagram pages into online storefronts.
In July, WhatsApp had 2 billion monthly active users worldwide. In 2019, the top three Countries of WhatsApp user origin were: India, Brazil, and the United States; the number of users in India was 3 times and 5 times that of Brazil and the United States, respectively.
As the payment function "WhatsApp Pay" gradually rolls out in major markets around the world, Facebook Shops and Instagram Shop will serve as the main carriers of store pages, while WhatsApp will be the main messaging app that communicates with merchants and users.
The acquisition of Kustomer will not only enhance the automated processing efficiency of Facebook's private messages, but also improve the customer management efficiency of Facebook enterprise users by using Customer Management Services in the form of Communication such as Kustomer's telephone and email.
As for Kustomer's future Meta said: "The company plans to support Kustomer's operations by providing the resources needed to scale up the business, improve and innovate its product offering, and delight its customers. ”
In August, the European Commission announced an in-depth investigation into the deal, saying it could reduce competition in the customer service software market.
Meta has acquired more than 100 companies and startups over its 16-year history. Its two most famous acquisitions — Instagram in 2012 for $1 billion and WhatsApp in 2014 for $19 billion — have had a profound impact on the Internet landscape.
It's worth mentioning that some regulators are concerned that the deal could allow Meta to block other customer service software providers from accessing its services such as Instagram, WhatsApp or Messenger.
People familiar with the matter said today that after making a series of concessions, the deal will be approved by the European Union.
Meta has provided a remedy, focusing on interoperability issues, that is, allowing different products and technologies to run together.
The European Commission declined to comment. As planned, the European Commission will make a decision on the deal by January 28, 2022.
Meta said: "This transaction will increase competition and bring more innovation to businesses and consumers in the dynamic and competitive CRM and business information space." ”
Previously, the deal has been approved by regulators in the UK and Australia, and is still awaiting approval from regulators such as the US and Germany.