The UK Competition and Markets Authority (CMA) stated on Friday, July 30, that it has started a merger investigation into the acquisition by Facebook of Kustomer.
The competition watchdog stated it is considering whether the transaction will result in the creation of a relevant merger situation and whether it is expected to result in a substantial lessening of competition within the UK markets.
Facebook announced in November that it would buy Kustomer, a startup that specializes in customer-service platforms and chatbots. People familiar with the matter said the deal would value Kustomer at a little more than US$1 billion, The Wall Street Journal reported.
The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
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