<\/p>\n
Meta ordered to sell Giphy after a UK watchdog ruling. <\/p>\n
The Competition and Markets Authority upheld their November ruling that ordered the parent company of Facebook, Instagram and WhatsApp to sell the gif-creation site as it hindered \u201ccompetition\u201d and choice for social media users. <\/p>\n
The move marks a first time the British regulators have stopped a deal by a Silicon Valley giant, who bought the market leader in gifs to social media platforms \u2013 such as TikTok, Snapchat and Twitter \u2013 after they purchased it for \u00a3290 million (more than R59 billion) in 2020.<\/p>\n
Stuart McIntosh, who chaired the independent inquiry that conducted the remittal investigation, said: \u201cThis deal would significantly reduce competition in two markets. <\/p>\n
\u201cIt has already resulted in the removal of a potential challenger in the UK display ad market, while also giving Meta the ability to further increase its substantial market power in social media. <\/p>\n
\u201cThe only way this can be addressed is by the sale of Giphy. <\/p>\n
\u201cThis will promote innovation in digital advertising, and also ensure UK social media users continue to benefit from access to Giphy.\u201d<\/p>\n
Meta- who appealed the decision last year arguing they would \u201cprotect millions of social media users\u201d \u2013 admitted to be \u201cdisappointed\u201d by the ruling but would respect it. <\/p>\n
A spokesperson for the Mark Zuckerberg-founded company said: \u201cWe are disappointed by the CMA\u2019s decision but accept today\u2019s ruling as the final word on the matter. <\/p>\n
\u201cWe will work closely with the CMA on divesting Giphy.<\/p>\n
\u201cWe are grateful to the Giphy team during this uncertain time for their business, and wish them every success. <\/p>\n
\u201cWe will continue to evaluate opportunities \u2013 including through acquisition \u2013 to bring innovation and choice to more people in the UK and around the world.\u201d<\/p>\n