Meta will sell Giphy in compliance with UK competition watchdog rules
The company accepts the decision and its stipulations that Giphy must be acquired by an authorized buyer says, Meta.
Meta is forced to sell Giphy, the company it acquired for $400 million in May 2020, after the UK regulator asked the tech giant to divest the company.
The report was published by the Competition and Markets Authority after months of inquiries and investigations and states that the acquisition will limit access to GIFs through other social media platforms.
The agency concluded that Meta can use Giphy as leverage to obtain more information from the user in exchange for GIF access to other platforms, or it can block access to competing platforms altogether.
The CMA was concerned about removing Giphy from the merger as a potential challenger to Meta in the display ad market and provided it with significant market power on social media. App has bought a few tech companies in the past, including Instagram, WhatsApp, and Oculus, but this will be the first time it has had to sell a company it just acquired.
A Meta spokesman said the company accepted the CMA’s decision and the stipulation that Giphy must be acquired by an authorized buyer.
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