Britain forces Facebook – Meta to sell the Giphy platform

The British Competition and Markets Authority (CMA) demanded on Tuesday from Facebook – Meta to sell the GIF Giphy sharing platform, after finding that the agreement could harm the social media users and the advertisers of Geraia. Albion.

The Competition and Market Authority said the deal could hurt social media users as well as UK advertisers. Meta replied that she disagreed with the decision and that she was considering appealing it.

The regulator concluded that the acquisition of Giphy by Meta would reduce competition between social networking platforms. He added that the deal has already removed Giphy as a potential competitor in the advertising market.

A CMA panel has found that Facebook could increase its already significant market power over other social media platforms by denying or restricting access by other platforms to Giphy GIFs. This in turn will send more traffic to Facebook-owned sites – Facebook, WhatsApp and Instagram – which already account for 73% of social media users’ time in the UK, the commission concluded.

Meta could also change the terms of access to Giphy GIFs, the CMA said. For example, it could require TikTok, Twitter and Snapchat to provide more user data in order to access Giphy GIFs.

Facebook shut down Giphy’s advertising services at the time of the merger, removing a significant source of potential competition. The CMA sees the development as particularly worrying, as Facebook controls almost half of the 7 7 billion advertising market in the UK.

Stuart McIntosh, chairman of the independent research team conducting the research, said:

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

cnbc.com

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