Facebook's Kustomer deal may hurt competition, EU regulators say

FILE PHOTO: Facebook logo is reflected in a drop on a syringe needle in this illustration photo taken March 16, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

BRUSSELS (Reuters) -Facebook's acquisition of U.S. customer service startup Kustomer may hurt competition and boost its market power in online advertising, European Union antitrust regulators warned on Monday as they opened a full-scale investigation into the deal.

The move by the European Commission comes amid regulatory concerns on both sides of the Atlantic that a buying spree of startups by big firms, which normally don't trigger competition scrutiny because of the low value of the deal, may be so-called killer acquisitions aimed at closing down nascent rivals.