August 13, 2021
Facebook may have to sell Giphy after results from the Competition and Markets Authority (CMA) showed that there are ways Facebook could stop other platforms from using the service.
Giphy is a search engine that Facebook acquired last year for a reported sum of $400 million.
While stating that the acquisition of Giphy eliminated a potential competitor to Facebook in display advertising, the CMA warned that the social media giant could also ask Giphy customers such as TikTok, Twitter and Snapchat to provide more user data to access Giphy Gifs.
Based on the latest findings, the CMA will now consult before reaching a final decision and Facebook could be forced to sell Giphy if concerns are confirmed.
In response to the issue, Facebook claimed the results were “not supported by the evidence.”
In an exclusive interview with BBC News, the company said: “We disagree with the CMA’s preliminary findings, which we do not believe to be supported by the evidence. As we have demonstrated, this merger is in the best interest of people and businesses in the U.K. – and around the world – who use Giphy and our services. We will continue to work with the CMA to address the misconception that the deal harms competition.”
For more information, read the original story on the BBC.
