British regulatory body orders Meta to sell its $400 million acquisition

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November 30, 2021, 5:18 PM GMT+0

Facebook acquired Giphy in May 2020 for around $400 million.

Just 19 months after acquiring it, Facebook’s parent company Meta has been ordered to sell animated image-sharing platform, Giphy. UK’s competition regulatory body, the Competition and Markets Authority (CMA) found that the acquisition would reduce competition between social media platforms.

The body also raised concerns that Facebook could increase its market power by denying or limiting other social media platforms from accessing Giphy’s content. Additionally, all Giphy users who are active on platforms like TikTok and Twitter will have to consent to Facebook altering their terms of access for the gif-sharing tools.

Stuart McIntosh, the chairperson of the independent inquiry group that investigated the matter, said, “By requiring Facebook to sell Giphy, we are protecting millions of social media users and promoting competition and innovation in digital advertising.” Additionally, CMA fined Facebook $70 million for concealing information about the acquisition.

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