You are here: Home » International » News » Companies
Business Standard

UK competition watchdog asks Meta to sell GIF maker Giphy

The Competition and Markets Authority (CMA) said it had found that last year's acquisition of Giphy would reduce competition between social media platforms and in display advertising

Topics
Britain | Social Media | competition

Pushkala Aripaka & Paul Sandle | Reuters  |  London 

Metaverse
Photo: Bloomberg and AP

Facebook owner Meta has been told by the UK watchdog to sell popular animated images platform Giphy in Britain’s first such move against so-called Big Tech in its efforts to bolster regulation of the sector.

The and Markets Authority (CMA) said it had found that last year's acquisition of Giphy would reduce between platforms and in display advertising.

Facebook, which was recently rebranded as Meta Platforms, said it could appeal against the CMA's decision. It has four weeks to appeal.

“The tie-up between Facebook and Giphy has already removed a potential challenger in the display advertising market,” said Stuart McIntosh, chair of the independent investigation on Facebook-Giphy for the CMA.

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

Facebook said it disagreed with the decision.

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

The CMA in October fined the company a record $70 million for breaching an order imposed during its investigation into the acquisition, having said in August that it may need Facebook to sell Giphy.

Competitor access

Facebook bought Giphy, a website for making and sharing animated images, or GIFs, for a reported $400 million in May 2020 to integrate the operation with its Instagram photo-sharing app.

It has defended the deal to the CMA.

Another major provider of GIFs is Google’s Tenor.

The regulator, however, was concerned that Meta could deny competitors access to Giphy GIFs, or force the likes of TikTok, Twitter and Snapchat to provide more user data to use them.

It also said that innovative advertising services launched by Giphy in the United States before the deal could have been expanded to other markets such as Britain, where Meta controls nearly half of the £7 billion ($9.3 billion) display advertising market.

The CMA has been stepping up regulation of the Big Tech sector.

Last week Alphabet's Google pledged more restrictions on its use of data from its Chrome browser to address CMA concerns about plans to ban third-party cookies that advertisers use to track consumers.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, December 01 2021. 00:16 IST
RECOMMENDED FOR YOU
.