Meta agrees to sell Giphy, ending battle with UK regulators
PTI, Oct 19, 2022, 9:45 AM IST
Credit: Reuters photo
Facebook parent Meta said Tuesday that it will sell off Giphy after running out of options to thwart a ruling by UK regulators, who again found that the deal to buy the GIF-sharing platform would limit competition and innovation.
Britain’s competition watchdog had ordered Meta last year to reverse the deal — a year after it was announced — but the company appealed to a tribunal, which rejected most of its arguments.
After reviewing the case further, the Competition and Markets Authority concluded that “the only way to avoid the significant impact the deal would have on competition” is for Meta to sell Giphy to an approved buyer.
“We are disappointed by the CMA’s decision but accept today’s ruling as the final word on the matter. We will work closely with the CMA on divesting GIPHY,” Meta said in a statement. “We will continue to evaluate opportunities — including through acquisition — to bring innovation and choice to more people in the UK and around the world.”
New York-based Giphy’s library of short looping videos, or GIFs, are a popular tool for internet users sending messages or posting on social media.
Meta said it would wait for more details on the divestment order and wouldn’t file another appeal, bringing to an end the drawn-out battle over the acquisition reportedly worth $400 million.
It was the first time the UK watchdog had sought to unwind a tech deal and marked a prelude to stepped-up scrutiny: earlier this year the CMA opened inquiries into Amazon’s dominance and Microsoft’s purchase of videogame maker Activision Blizzard.
The watchdog’s original in-depth investigation found that Facebook’s purchase of Giphy would hurt social media users and advertisers by stifling competition for animated images.
After reviewing its decision, the watchdog concluded Tuesday that the deal would boost traffic to Meta-owned sites, while denying or limiting access for online platforms to Giphy GIFs. It also found that the deal would remove potential competition from the UK’s 7 billion pound ($7.9 billion) display advertising market, half of which Facebook controls.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Amid rise in ‘Digital Arrest’ cases, Indian Cyber Crime Coordination Centre issues advisory for citizens
Authorities swing into action to clear waterlogging, downed trees after heavy rains in Bengaluru
Will campaign for BJP if PM Modi provides free electricity in NDA-ruled states before assembly polls: Kejriwal
Related Articles More
IPO mkt braces for brief slowdown; 2 new issues targeting Rs 365 cr next week
Adani-Hindenburg row: Public Accounts Committee calls SEBI chief on Oct 24
RBI research says onion farmers get 36% of consumers’ spend, pitches for futures trading, private mandis
Markets fall in early trade on unabated foreign fund outflows, Middle East conflict
BSE to discontinue weekly index derivatives on Sensex 50, Bankex following SEBI’s directive
MUST WATCH
Latest Additions
‘First Announce, Second Think’: Cong slams govt after it ‘approves’ railway services demerger
Rajkumar Hirani to receive MP govt’s Kishore Kumar Samman
Pejawar Swamiji calls for independent temple trusts to protect Hindu faith
BJP leaders laud PM Modi at rally in Delhi’s Burari for decisions on property mutation, power connections
Rs 5,600-cr drug seizure case: Delhi Police recovers cocaine worth Rs 10 cr from Amritsar, 1 held
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.