Britain’s competition regulator on Tuesday ordered Meta to sell animated image platform Giphy after a court ruled the purchase could hurt rivals and remove a potential advertising competitor.
Meta said it accepts the Competition and Markets Authority’s (CMA) request to undo the 2020 deal.
“We are disappointed with the CMA’s decision, but accept today’s decision as the final word on the matter,” a Meta spokesperson said in a statement. “We will work closely with the CMA on the divestment of Giphy.”
The decision was the first time a regulator had forced a tech giant to sell an already acquired company and signaled a new determination to look into digital businesses.
The body noted that UK users search for 1 billion GIFs a month on Giphy, and 73% of the time they spend on social media is on Meta’s Facebook, Instagram and WhatsApp.
The company appealed the decision, but a court upheld the CMA’s decision on five of the six grounds in June.
“This agreement significantly reduces competition in two markets,” said Stuart McIntosh, president of an independent research group. “The only way to resolve this is to sell Giphy,” he added.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
