The social media giant’s recent $400 million purchase of Giphy faces an in-depth probe by the UK’s antitrust watchdog.
The UK’s watchdog Competition and Markets Authority is taking a closer look at the Facebook-Giphy acquisition over concerns that the deal could reduce competition in the digital advertising space. The watchdog will investigate and report the outcome before 15 September.
The watchdog said, before the acquisition, Giphy had planned to expand its digital advertising partnerships to many countries, including the UK. For now, CMA’s ongoing investigation has stopped the social media giant from fully integrating Giphy into its broader business.
“If Giphy and Facebook remain merged, Giphy could have less incentive to expand its digital advertising, leading to a loss of potential competition in this market,” CMA said. A Facebook spokesperson said that they would fully cooperate with CMA’s investigation.
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