Earlier this week, the UK Competition and Markets Authority (CMA) ordered US-based Meta* Platforms to sell Giphy, an animated image storage and sharing service. The move is driven by fears that the social media giant could restrict access to the platform’s GIF content and use it to eliminate potential advertising competitors. In response, Meta* announced the final decision of the CMA.
Image Source: Giphy
“We are disappointed with the CMA’s decision, but take today’s ruling as the final word on the matter. We will be working closely with CMA on the sale of Giphy,” commented a Meta* spokesperson.
Notably, the outcome of this case marks the first time that the regulator has forced an American tech giant to sell an already acquired company. It also indicates the regulator’s determination to further scrutinize transactions in the IT sector. The source notes that regulators around the world have become more proactive in controlling transactions conducted by IT giants.
Earlier this month, the U.S. Antitrust Agency filed a lawsuit against Meta* over its acquisition of virtual reality content producer Within Unlimited Inc. The agency believes that this acquisition will allow Meta* to create a monopoly in the field of fitness applications for virtual reality. The European Union is also actively working to control the activities of technology giants, establishing new antitrust rules and introducing laws regulating the processing of user data.
* Included in the list of public associations and religious organizations in respect of which the court made a final decision to liquidate or ban activities on the grounds provided for by Federal Law No. 114-FZ of July 25, 2002 “On countering extremist activity.”
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