Nobody is giphing Facebook’s parent Meta any breaks these days. 😞
In a landmark case, the U.K.’s Competition and Market Authority (CMA) unwound the company’s $400 million purchase of GIPHY. The regulator cited the risk of a substantial decline in competition within the social media and display advertising market.
The CMA had originally ordered the divestment last November; however, Meta appealed the decision in several courts. At those court hearings, GIPHY took an interesting approach to defend the deal. The GIF database and search engine downplayed the significance of Meta’s takeover, saying its core product was becoming unpopular and no other company would willingly buy it.
Unfortunately for both parties, the CMA did not buy any of their arguments. Instead, it ordered Meta to sell GIPHY in its entirety to a suitable buyer. 📝
The move has put tech giants on further notice, as it’s the first time a global regulator has unwound a completed deal by a Big Tech company. Over the last few years, Europe has come out ahead of many in the courts as it demands accountability and fair play.
Needless to say, this likely isn’t the last story of its kind. European governments have made it clear they’re not backing down from tech giants and other multinational corporations. So stay tuned… 📻