Facebook may have to sell Giphy on Britain’s competition concerns

Aug 14, 2021
Facebook may have to sell Giphy on Britain’s competition concerns

Fb bought Giphy, a website for making and sharing animated pictures, or GIFs, in May last yr to mix it with its photo-sharing app, Instagram.

Britain might require Fb to advertise GIF website Giphy after the nation’s rivals regulator said on Thursday its investigation found the deal between the two companies would damage rivals throughout the present selling market.

Fb, the world’s largest social media agency, bought Giphy, a website for making and sharing animated pictures, or GIFs, in May last yr to mix it with its photo-sharing app, Instagram. The deal was pegged at $400 million by Axios.

The UK’s Rivals and Markets Authority (CMA) began a probe into the deal in January at a time when the social media group was beneath world regulatory scrutiny over antitrust points. In April the CMA referred the deal to an in-depth investigation.

“Giphy’s takeover would possibly see Fb withdrawing GIFs from competing platforms or requiring additional shopper data with a objective to entry them. It moreover removes a attainable challenger to Fb,” said Stuart McIntosh, chair of the unbiased investigation for the CMA.

The CMA said that it has engaged with totally different firms reviewing the deal to help the CMA’s investigation, and is now inviting suggestions from occasions by Sept. 2 for its provisional findings.

California-based Fb and Giphy did not immediately reply to Reuters requests for comment.