Facebook-owner Meta told to sell Giphy as UK regulator blocks acquisition
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Mark Zuckerberg, Facebook’s CEO, speaks at a virtual and augmented reality conference live streamed to announce Facebook’s rebranding as Meta. This screen capture is taken from an October 28th 2021 video.
Facebook | via Reuters
MetaThe U.K. competition watchdog has told Facebook parent that Giphy, a gif-sharing site, must be sold.
The Competition and Markets Authority stated Tuesday that the agreement could cause damage to social media users and U.K. advertiser.
CMA was launched in August said it had provisionally found Facebook’s purchase of Giphy would harm competition between social media platforms and remove a potential challenger in the display ad market.
CMA indicated at that time it could require Facebook’s unwinding of the deal. reportedly worth $400 millionGiphy can be sold off if competition concerns become confirmed.
Facebook stated that Giphy would be integrated into its Instagram app as part of the agreement.
CMA fined Facebook £50.5 million ($67.4 million) in October for failing to provide regular updates to show that it is complying with an order. Facebook claimed that it had “significantly restricted the scope of these updates”, despite numerous warnings.
CNBC reached out to Facebook for comments but Facebook didn’t immediately reply.
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