Meta will face the possible verdict of having to ditch Giphy

0
20
giphy.jpg
giphy.jpg

During last August we echoed the possibility that Facebook Inc, now Meta, could be forced to get rid of the acquisition of Giphy, one of the most important GIF platforms on the Internet, by action of the Competition Authority and United Kingdom Markets (CMA), which given its investigations carried out since last June, is expected to deliver its final verdict in the coming days, as reported now by the Financial Times.

If it is positioned against the acquisition, Meta would have to get rid of Giphy, being the first time that the regulator has rolled back a major acquisition of a technology company, supposing a huge setback in Meta and in its plans to integrate it into its different services, especially in Instagram.

The CMA went on to point out last summer that the acquisition of Giphy by the then Facebook Inc for 400 million dollars in May 2020 “would damage competition between social media platforms and eliminate a potential competitor in the market of the graphic advertising ”, counting at that time with preliminary considerations, although it is currently considering its final decision, having until next December 1 to publish it, according to Engadget.

Meta came to defend itself by stating that Giphy does not operate in the United Kingdom, so the CMA would not be competent in this case, in addition to pointing out that Giphy’s payment services should not be classified as display advertising.

In this regard, one of the CMA’s allegations is that the acquisition of Giphy would eliminate a competitor in the Internet advertising segment, in addition to considering that there is also the possibility that the agreement would make it impossible for other social networks such as Snapchat or TikTok the access to the platform’s GIFs library, among others.

SEE ALSO  Honor goes straight for Samsung: confirms that it will launch a smart ring and a folding clamshell phone

Already last October, the situation became red hot when the CMA fined Meta with 70 million dollars when it understood that Meta was in breach of one of its orders by “consciously refusing to report all the required information.”

Given the bad relations between the British competition regulator and Meta, it is likely to think that the CMA will position itself against it, although the final position will be known in the coming days, which could mark a before and after.