Meta ordered to sell Giphy by U.K. Competition and Markets Authority for anticompetitive reasons

Sections

Axios Local

Axios gets you smarter faster with news & information that matters

About

Subscribe

Meta agrees to sell Giphy following U K regulators' order

, author of Illustration: Shoshana Gordon/AxiosExit Content Preview Meta's hopes to acquire Giphy are finally kaput after the U.K.'s Competition and Markets Authority blocked the deal in a decision released Tuesday. Why it matters: If this sounds like déjà vu, that's likely because you remember that the to sell the GIF platform last November. Meta appealed, but this time, it's actually over. Flashback: Facebook Giphy in May 2020 for around $400 million. Almost immediately, the deal antitrust questions. Details: The U.K. regulators Tuesday that Meta's Giphy acquisition was anticompetitive because it could limit other platforms' access to GIFs and it removed a competitor in the advertising industry. "This deal ... already resulted in the removal of a potential challenger in the U.K. display ad market, while also giving Meta the ability to further increase its substantial market power in social media," said Stuart McIntosh, chair of the independent inquiry group carrying out the investigation. The other side: Meta said in a statement Tuesday it would not appeal the decision and would work with the CMA on divesting the business. "We will continue to evaluate opportunities — including through acquisition — to bring innovation and choice to more people in the UK and around the world," the statement said. What's next: More antitrust cases against tech companies could be coming — both and The Federal Trade Commission to block Meta's acquisition of virtual reality fitness startup Within Unlimited. Meta it last week.

Go deeper