Meta, the umbrella company of Facebook, Instagram and WhatsApp, launched the Giphy application. 400 million dollars had bought. However, this agreement, which took place in 2020, was blocked by the British Government.
The UK’s competition board, CMA, last year described Meta’s acquisition of Giphy as uncompetitive and decided that it should sell the GIF platform. According to the board, the application’s passing under Facebook control is against rival social media companies. an unfair advantage can provide.
Meta may have to sell its Giphy app
A company spokesperson, on the other hand, stated in a statement on the subject that “We do not agree with the preliminary findings of the CMA that we do not believe are supported by the evidence” and stated that they will work to eliminate the misconception that the agreement harms competition. In this context, Meta appealed the decision of the British competition board.
The appellate court made its decision. Of the 6 grounds Meta presented for appealing the CMA’s decision, 5 were rejected. unanimous competition committee He was right.
On the other hand, the court ruled that the CMA bought Snapchat’s Gfycat platform. Judging that you didn’t notify Meta in due time It gave Mark Zuckerberg a small trump card.
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A product or service offered in the UK more than 25 percent control, the CMA has sanctioning authority over the purchase. According to the findings of the competition board, Meta is able to support the animated sticker pack market in the UK thanks to the Giphy platform. 80-90 percent will dominate.
Meta and CMA have yet to reach a consensus on Giphy. Finally, the court’s decision is against Meta and the company may have to sell the popular GIF platform. Giphy’s fate will become clear in the coming days.
– What do you think about it? Is the UK competition board justified in wanting Meta to sell the Giphy? You can share your thoughts in the comments.