Nov 30, 2021.
The U.K.'s competition regulator ordered Facebook's parent company, Meta, to sell the animated image-sharing platform Giphy on Tuesday, a move that is set to unwind an 18 month-old acquisition and deal a blow to the recently rebranded company.
Meta has been ordered to sell Giphy.
The images are from the same company.
The review found that the deal could hurt social media users and advertisers in the UK.
The agency stated that the acquisition of the popular Gif-sharing platform by Facebook would reduce competition between social media platforms while also removing Giphy as a potential challenger in the online advertising market.
The acquisition of Giphy raised concerns that Facebook could use it to increase its market power by denying or limiting other platforms access to the library of GIFs.
The acquisition allows Facebook to change the terms of access to Giphy users on other social platforms, forcing them to give access to more user data, according to the agency.
Forbes reached out to Facebook, but the company indicated that it would appeal the decision.
The chairperson of the independent inquiry group that investigated the matter said that without action, it will allow Facebook to increase its market power in social media even further. By requiring Facebook to sell Giphy, we are protecting millions of social media users and promoting competition and innovation in digital advertising.
