UK Competition Commission Ordered Facebook to Sell GIF Sharing Platform [Tweet]

The UK Competition and Markets Authority (CMA) ordered Facebook to sell Giphy on Tuesday, claiming that acquiring the animated visual sharing platform will give the US company even more market dominance at the expense of rival social media platforms.

“After consulting with interested businesses and organisations – and assessing alternative solutions (known as ‘remedies’) put forward by Facebook – the CMA has concluded that its competition concerns can only be addressed by Facebook selling Giphy in its entirety to an approved buyer,” the competition watchdog said in a statement.

According to the CMA, the merger will block or restrict access to Giphy GIFs on other platforms, resulting in increased traffic to Facebook-owned social media sites such as Facebook, WhatsApp, and Instagram.

“By requiring Facebook to sell Giphy, we are protecting millions of social media users and promoting competition and innovation in digital advertising,” Stuart McIntosh, who chaired the independent inquiry group carrying out the phase 2 investigation, was quoted as saying.

Forsided, 30.11.2021

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