Giphy will no longer be from Facebook, they are forced to sell

The target, formerly known as facebook, he will have to back out of his big 2020 purchase. The UK Competition and Markets Authority (CMA) ordered Zuckerberg to sell Giphy after he lost his battle in the Competition Court of Appeal.

Although the CMA reversed the decision in July after the court sided with Meta on one issue, it felt the deal could still harm competition by limiting competitors’ access to Giphy’s GIFs, i.e. due to an antitrust issue.

Facebook bought Giphy in May 2020 for an unofficial price of $400 million. The company hoped that the purchase would improve the search for gifs and stickers in Stories and private messages of users. Instagram.

Although the firm claimed that Giphy would be “openly available” to other applications, CMA started an investigation a month later and in August of that year determined that the purchase would hurt competition on social media and advertising.

Meta dismissed these claims and appealed the Nov. 2021 Giphy sell-off order, arguing that the improvements will ultimately provide “more choices for everyone.”

Facebook will collaborate and sell Giphy

A spokesperson for Meta told Engadget that the company was “disappointed” with the CMA’s decision. but that he respect the result and cooperate in the sale of Giphy. The social media operator added that it would still consider the acquisition to offer more “innovation and choice”.

A failed Giphy deal won’t necessarily hurt Meta’s business. However, this comes as authorities reconsider the company’s purchase of Instagram and WhatsApp.

Meta’s habit of acquiring companies is under scrutiny, and changing the Giphy deal won’t ease the pressure. Governments have an obligation to work to ensure that monopolies do not arise, which is very difficult when there are companies that have more power than some governments.