UK Competition Authority Ordered Meta to Sell Giphy

UK Competition Authority Ordered Meta to Sell Giphy

December 27, 2021

Competition and Markets Authority of the United Kingdom has recently ordered Meta, Facebook parent company, to sell the gif creation website Giphy, which Meta had taken over in 2020.

Pursuant to the reasoning of the abovesaid authority, sell-off is the only way to resolve competition concerns thereof, i.e., protect social media users, and promote innovations in digital advertising. The respective ruling is notably rendered as, during its investigation, the UK competition watchdog has determined that Meta, upon takeover of Giphy, had terminated Giphy’s advertising services, which could further lead to removing the competitors from UK advertising market, as well as to cutting off the gifs supply to its rivals, and demanding more user data in order to use the subject website.

In relation thereto, Meta announced appealing against the respective decision, asserting that the said company and Giphy would jointly enhance Giphy’s products, i.e., services for the users both in UK and around the world, providing them more choices thereof.