Total
0
Shares
ACCC Chair Rod Sims. Source: Joel Carrett/AAP Image via AP
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • The ACCC says it will not oppose the acquisition of Kustomer by Meta, the social media giant formerly known as Facebook
  • Kustomer is a customer relationship management (CRM) software-as-a-service provider focused on business interactions with customers
  • A review by the ACCC found that, following the transaction, Meta was unlikely to restrict access to its messaging services for competing CRM providers
  • It also noted that Kustomer has a minimal presence in Australia and that the two companies’ services had only a minor overlap

Australia’s competition watchdog said this morning it would not oppose the acquisition of Kustomer by Meta, the social media behemoth formerly known as Facebook.

Based in New York, Kustomer is a customer relationship management (CRM) software-as-a-service provider focused on business interactions with customers. Central to its service is its ability to collate customer interactions that occur through channels used by a business, such as Facebook Messenger, WhatsApp, Twitter, email and SMS.

The Australian Competition and Consumer Commission (ACCC) noted that Kustomer has a minimal presence in Australia and that the two companies’ services had only a minor overlap.

While the ACCC will not oppose the acquisition, the deal remains subject to reviews by regulators in other jurisdictions, including the USA, Europe and the UK.

During its investigation, the ACCC found that access to Meta’s own messaging services — Facebook Messenger, WhatsApp and Instagram — is an important factor for some CRM providers.

“We were initially concerned about the prospect of Meta restricting access to its messaging services for competing CRM providers, however we concluded that Meta is unlikely to have an incentive to do this,” ACCC Chair Rod Sims said.

“We consider that Meta’s interest is in promoting use of its messaging services so that it can grow its advertising business. Restricting access for competing CRM providers is inconsistent with that.”

As a result, the ACCC concluded that Meta is likely to continue promoting its services through other CRM providers, including Kustomer.

“Based on the information gathered during our investigation, we consider this proposed acquisition is unlikely to have a significant impact in Australia, and is not likely to result in a substantially lessening of competition in any market in Australia,” Mr Sims added.

More From The Market Herald

" Which ASX-listed businesses handed back unneeded JobKeeper payments?

The corporate watchdog today released the statistics for listed businesses who have received JobKeeper payments over the course of the COVID-19 pandemic —

" RBA “prepared to be patient” as interest rates stay on hold

The Reserve Bank of Australia (RBA) used its final meeting of the year to keep official interest rates at a record low of

" Australian household spending back to pre-COVID levels: CBA

Australian household spending has returned to pre-COVID levels for the first time, according to the latest Householder Spending Intentions (HSI) Index report from

" Alinta Energy may build wind farm that could power Portland smelter

Alinta Energy is considering building an offshore wind farm off the coast of Portland in Victoria that could potential help power Aloca’s Portland