British regulator determines that Meta should sell Giphy

The UK competition regulator said on Tuesday (30) that it had instructed Meta Platforms, owner of Facebook, to sell the animated image platform Giphy, after pointing out that the agreement could harm social media users and British advertisers.

The CMA (Competition and Market Authority) said the decision was in line with provisional findings that indicate that Facebook’s acquisition of Giphy in May last year would reduce competition between companies and platforms. social media and graphic advertising market.

“The Facebook-Giphy merger has already eliminated a potential competitor in the display advertising market,” said Stuart McIntosh, who led the independent Facebook-Giphy investigation for the CMA.

“By requiring Facebook to sell Giphy, we are protecting millions of social media users and promoting competition and innovation in digital advertising,” he added.

Meta said it can appeal the CMA’s decision.

“We are reviewing the decision and considering all options, including the appeal,” a Meta spokesman said in a statement.

In October, the CMA imposed about $70 million (R$393 million at the current price) on the company for violating an order imposed during its investigation into the deal, having suggested in August that Facebook might need to sell Giphy.

In May 2020, Facebook bought Giphy, a website to create and share animated images, or GIFs, for $400 million (R$2.2 billion) —according to press reports— to integrate it into its app. photo sharing system.