European Union antitrust regulators have extended the target date for a decision on Facebook’s purchase of New York-based software company Kustomer to Dec. 15, according to a report on Monday Aug. 9 by Reuters. The original deadline was December 8 and was pushed back at the request of the social media giant.
As PYMNTS previously reported, the EU conducted a preliminary review of the acquisition on August 2 as a precondition for launching a more in-depth 90-day investigation. Facebook had announced the purchase in November to expand WhatsApp instant messaging services.
Facebook has previously said the deal is pro-competitive and will provide businesses and customers with more innovation.
Read more: EU prepares to investigate Facebook Kustomer purchase
EU antitrust regulators choose to take a closer look at deals with tech, pharmaceutical and biotech startups, PYMNTS previously reported.
Regulators are looking for warning signs of “murderous acquisitions” in which large companies buy up competitors to crush the competition – something Facebook has already been accused of. In the United States, in addition to antitrust cases brought by the Federal Trade Commission and several different states, Facebook could also be the target of a bill created by Senator Chuck Grassley of Iowa and Senator Amy Klobuchar of Minnesota. that would prevent tech companies from discriminating. against smaller competitors.
According to a previous report from PYMNTS, Facebook had sought out Kustomer for its software-as-a-service capabilities, which would positively increase Facebook’s options and support its ever-popular WhatsApp, which has grown in popularity, especially amid the pandemic.
See more: Antitrust decision on Facebook’s Kustomer purchase expected by August
Kustomer’s CEO and Chairman Brad Birnbaum co-founded the company in 2015 after co-founding Assistly, which Salesforce later bought and renamed Desk.com, according to the company’s website. Kustomer provides customer relationship management software that can be tailored for a variety of industries including financial services, retail and e-commerce, healthcare, government, education, and travel / hospitality .
Facebook’s acquisition of the chatbot company could bring its valuation to more than $ 1 billion, PYMNTS previously noted.
Also read: Facebook to acquire Chatbot Kustomer start-up