HomeinetMeta is called upon to sell Giphy

Meta is called upon to sell Giphy

As rumored, the United Kingdom Competition and Market Authority (MAC) ordered Meta (formerly Facebook) to sell the GIF repository Giphy, saying that its acquisition "can hurt UK social media users and advertisers“. According to the competition authority, the possession of Giphy could strengthen Meta's already enormous market power, restricting access of other platforms to Giphy GIFs and "leading more traffic to sites owned by Meta - Facebook, WhatsApp and Instagram".

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Meta CMA

The CMA said that most users already spend most of their time on Meta sites and that thanks to Giphy, the company can "Hit" more easily competitors such as TikTok, Twitter and Snapchat. The British authority added that before the Facebook-Giphy merger, Giphy Launches 'Innovative Advertising Services' used by well-known brands.

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"Facebook discontinued Giphy's advertising services at the time of the merger, removing a significant source of potential competition ", wrote the regulator. "The CMA is very concerned about this".

Meta has previously challenged the CMA 's competition concerns, arguing that there was no chance Giphy's advertising business would become a viable competitor.

Facebook bought Giphy in May 2020 (reportedly $ 400 million) with the goal of integrating it into Instagram. One month later, the CMA launched an investigation into the deal and a little later decided that Facebook could prevent competitors such as TikTok and Snapchat from accessing Giphy's GIF library. At the same time, he said the deal could to harm competition in the field of advertising, as Facebook / Meta stopped advertising Giphy.

Facebook Giphy

In October, the authority imposed on Meta fine 70 million dollars for violation of the rules related to the agreement. According to the CMA, the company significantly reduced the information and updates required by the British authority, despite repeated warnings. Nouns, Facebook was fined for failing to comply and cooperate with the CMA.

See also: Facebook: Did he know that his algorithm promoted hate speech against people of color?

The CMA said that after investigation and discussions, "concluded that its competition concerns could be addressed only if Facebook / Meta sells Giphy wholly to an approved buyer“. However, it is not clear how this will be done.

"We disagree with this decision. We consider the decision and consider all options, including appeal. Both consumers and Giphy are better off supporting our infrastructure, talent and resources", Said a representative of Meta in Engadget. "Together, Meta and Giphy will improve the product Giphy for millions of people, businesses, developers and API partners in the UK and around the world".

Source: Engadget

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