Meta approved the sale of the Giphy animation platform at the request of British authorities

Facebook’s parent company said it would comply with the CMA’s decision, although it expressed disappointment at the decision.

Previously, in November 2021, the CMA blocked Meta from acquiring Giphy on the grounds that the deal, which is believed to be worth up to $ 400 million, could reduce creativity in the animation advertising market. The CMA is concerned that Meta’s acquisition of Giphy could harm social media users and advertising agencies in the UK. In addition, according to CMA, Meta’s acquisition of Giphy will reduce the level of competition between social media platforms and this deal effectively eliminates Giphy’s potential challenge to competitors in the advertising market. .

A committee concluded that Facebook would be able to significantly increase its market power over other social networking platforms by denying or restricting access to GIFs on Giphy. This will lead to an increase in user traffic towards the Facebook, WhatsApp and Instagram apps – which already account for 73% of user time on social media in the UK. According to the CMA, Meta may change its terms of access for its own benefit, for example requiring TikTok, Twitter or Snapchat to provide more user data in order to be able to use GIFs from Giphy.

Meta said the company disagreed with the decision and appealed.

In the latest decision on October 18, CMA did not change its opinion. According to Stuart McIntosh, head of the independent investigative agency, the deal will significantly reduce competition in both the UK and US markets. He affirmed, Meta reselling Giphy is the only solution.