The British antitrust regulator will reportedly block Meta’s purchase of Giphy

The British Competition and Markets Authority (CMA) is expected to cancel the purchase of Giphy by Facebook parent company Meta in the coming days, according to Financial Times. If so, it would be the first time that a competition regulator in the country has refused a major technology acquisition.

Meta (or Facebook, at the time) announced in May 2020 that it had purchased a GIF platform with the goal of inserting it into Instagram. Reports state that the contract price is $ 400 million.

However, the CMA has expressed concerns about the acquisition. The following month, she opened an investigation into the deal. The regulator ruled in August that the deal could prevent rivals such as TikTok and Snapchat from accessing Giphy’s library of GIFs. It also states that the agreement could eliminate a potential competitor to Meti in the UK advertising sector. The target cut off Giphy’s paid advertising partnerships, which the CMA said stopped the spread of the company’s ads, including to other countries.

The supervisor suggested that Meta could be forced to sell the service. A CMA spokesman told Engadget that he did not announce his final decision, but he has until December 1 to do so.

Meta has previously argued that because Giphy has no surgery in the UK, the CMA has no jurisdiction in this case. In addition, it is argued that Giphy’s paid services cannot be classified as display advertising according to the CMA’s market definition.

The issue between Meta and the CMA became more contentious in October, when authorities fined the company nearly $ 70 million for violating business-related rules. The CMA said it was the first time it had found that the company had violated one of its orders by “knowingly refusing to report all necessary information”.

Engadget contacted Meta for comment.

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Naveen Kumar

Friendly communicator. Music maven. Explorer. Pop culture trailblazer. Social media practitioner.

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