Facebook parent The Joint Competition Meta has been instructed by UK competition and marketplace Giphy to sell. Then known simply as Facebook, the company bought the gif-sharing search engine last year for $315 million (£236 million).
He plans to integrate Giphy’s massive database of animated short videos with his other social media platform, Instagram. However, the CMA ruled the purchase was unfair to competing for social media platforms. Facebook adopted Meta as its new company name in October, but its platforms. Facebook, Instagram, and WhatsApp, retain their original identities.
When he announced the acquisition of Giphy in May 2020, he said that 50% of Gifhy’s search engine traffic now comes from the Facebook platform – half from Instagram.
But Giphy also provides gifs for competitors like TikTok, Snapchat, and Twitter. CMA said, “After consulting with interested companies and organizations. The Joint Competition And evaluating alternative solutions proposed by Facebook – CMA concluded that only selling Giphy in full to approved buyers would resolve the competition issue.”
We targeted #Facebook to sell Giphy after realizing that the acquisition could reduce competition. Between social media platforms and increase Facebook’s already considerable market power. Leading an independent acquisition investigation, Stuart Mackintosh said Facebook could not expand. Its sizeable market power on social media by controlling competitors’ access to gypsy gifs.
“By getting Facebook to sell Giphy, we protect millions of social media users. And promote competition and innovation in digital advertising,” he added.
“We are reviewing the decision also considering all options, including an appeal. “Consumers and Giphy are better off with the support of our infrastructure, talent, and resources.
“Together, Meta and Giphy will enhance Giphy’s stocks for the millions of people, businesses, developers. Also API partners in the UK and around the world who use Giphy every day, with more choices for all.”