Facebook Questions British Watchdog’s Authority to Order Giphy Sale

Facebook made the case for not selling Giphy in a strong response to the UK competition regulator, and the tech company questioned the watchdog’s call to divest the GIF website over concerns. concerns about access and anti-competitiveness.

Facebook argued that “the inability of the CMA (Competition and Markets Authority) to issue any order against Giphy raises serious questions about the enforceability of any divestment and whether the order will any such action may be effective,” in a letter published by the CMA on Wednesday.

Last month, the regulator hinted that Facebook, the world’s largest social media company, may need to sell Giphy based on preliminary findings that the deal would affect the display advertising market. competitive photo and social networks.

Facebook in its response said the CMA’s interim findings were “fundamental” and that the UK regulator had failed to offer “less intrusive and equally effective” alternatives to they settle the deal.

A CMA spokesperson said: “Our preliminary view is that GIPHY’s complete divestment would represent a comprehensive and effective remedial solution. “However, we will consider any behavioral action taken as part of our consultation.”

Facebook bought Giphy, a website for creating and sharing animated images, or GIFs, last year to integrate it with its Instagram platform. The deal, believed to be worth $400 million (about Rs 2,950), has been the subject of a CMA investigation since January.

Another example where the CMA ordered the sale of an incorporated unit was a February order for Viagogo to divest the international business of US-based ticket agency StubHub. Violation Pedagogy obeys.

The regulator has also set up a digital market wing in it to test the market dominance of big tech companies after deeming existing rules insufficient.

Facebook previously said that Giphy’s integration with other social platforms like Twitter, Snapchat and ByteDance’s TikTok would not change as a result of the deal.

However, the CMA in its interim finding said it was concerned that Facebook might require other social media platforms to provide more user data in order to access GIFs.

The CMA’s final decision will take effect in October. Facebook can appeal the final decision or the remedy itself.

© Thomson Reuters 2021


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