UK’s Competition Watchdog Set to Block Meta’s Acquisition of Giphy
Citing sources close to the matter, a report by the Financial Times is claiming that the UK’s Competition and Markets Authority (CMA) is all set to block Facebook, now Meta’s, acquisition of online GIF platform Giphy in the next few days (via Reuters).
The move could mark the first time the UK watchdog would reverse a Big Tech acquisition. Back in October, the regulator had fined the social media giant nearly $67.35 million for breaching an order that was imposed during an investigation into its purchase of the GIF platform, Giphy.
Meta ultimately bought Giphy in May last year to integrate it with its photo-sharing app, Instagram. The deal was then pegged at $400 million. A month later, however, the CMA announced that they were scrutinizing the deal.
Although Meta and Giphy are both US companies, the CMA has jurisdiction over any acquisition where the combined parties control over 25% of a particular good or service supplied in the UK.