The UK authorities ordered Facebook to sell the Giphy service

by time news

The UK Competition and Markets Authority (CMA) has asked Meta (formerly Facebook) to sell GIF search and storage service Giphy. Meta acquired Giphy in May 2020 for $ 400 million and was set to integrate it into Instagram.

Meta bought Giphy to get rid of a potential ad competitor, CMA said. Also, thanks to its control over GIFs, Meta’s influence on other social networks has increased significantly. Meta said they are thinking about the options for responding to the regulator’s request, including considering the possibility of filing an appeal.

In January 2021, the CMA launched an investigation into Meta over concerns that the company would remove GIFs from competing platforms or solicit user data. In October 2021, CMA fined Meta $ 69.6 million for refusing to provide data on the transaction.

Evgeny Fedunenko

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