CMA orders Facebook to sell Giphy

 

CMA orders Facebook to sell Giphy

 

The CMA has published its final report on its in-depth inquiry into the completed acquisition by Facebook, Inc (now Meta Platforms, Inc ) of Giphy, Inc.

The CMA has confirmed its provisional finding that a full divestment of Giphy is the only solution to the substantial lessening of competition it has identified.

Facebook is by far the largest provider of social media and messaging services in the UK. Giphy is the world's leading provider of free GIFs.

Given the multi-sided nature of the relevant markets, the CMA raised competition concerns in social media and in display advertising arising from the elimination of a potential competitor.

Prior to the CMA’s intervention, there had already been a high degree of integration.  Facebook is being required to restore certain Giphy activities to ensure that it will have the necessary management and technical assets to enable it to be an effective competitor, post-divestment to a purchaser to be approved by the CMA.

This is the first time that the CMA has prohibited outright a merger by a Big Tech firm

 

https://www.gov.uk/government/news/cma-directs-facebook-to-sell-giphy