Facebook Gets Permit To Acquire Customers, European Union Authorities Are Worried About Monopoly Threats It Caused.

Facebook, the acquisition of an online business services company. (photo credit: pixabay)

JAKARTA - Facebook will secure EU Antitrust Commission approval for its "Customer" acquisition after offering a solution that would allow the rival's product to work with the product of a US customer service startup, said one of the sources familiar with the matter.

The purchase of startups by large companies has so far sparked concern on both sides of the Atlantic, the US and the European Union. Regulators are concerned about so-called assassination acquisitions, which aim to kill off potential rivals before they are big enough to pose a threat.

The world's largest social network, also announced a deal in November 2020, which will give it another tool to attract more sellers to its platform.

Customers, who sell CRM software to businesses so they can communicate with consumers via phone, email, text message, WhatsApp, Instagram, and other channels, will help Facebook improve its instant messaging app WhatsApp, whose use has surged during the COVID-19 pandemic.

Facebook has provided solutions that focus on interoperability issues that allow different products and technologies to work together, the sources were quoted as saying by Reuters.

The European Commission, which said the deal could hurt competition and increase Facebook's strength in online advertising, later sought feedback from rivals and users, they said.

The EU's Executive Committee took over the case after Austria's competition body requested them, even though the deal falls below the EU turnover threshold. Supervisors exercise a rarely used power known as Article 22 which provides some discretion.

European Union competition enforcers, who are scheduled to decide on a deal on January 28, declined to comment on this.

Facebook itself said: "This deal will increase competition and bring more innovation to businesses and consumers in the dynamic and competitive CRM and business messaging space."

Last week, the German cartel's office told Facebook to seek its approval of the deal, which has previously received the green light in Britain and Australia.