Meta’s Proposed Sale of Giphy to Twitter Faces Block by U.K. Competition Authority
Regulators Say Deal Raises Competition Concerns in the Market For Display Advertising
Giphy is a popular platform for creating and sharing animated GIFs
Meta, the parent company of Facebook, has been ordered to sell Giphy, a popular platform for creating and sharing animated GIFs, by the U.K.’s Competition and Markets Authority (CMA).
The CMA said the deal, which was first announced in 2020, would give Meta too much control over the market for display advertising and could lead to higher prices for consumers and less choice.
“The CMA is concerned that the merger would reduce competition in the market for display advertising in the UK,” the CMA said in a statement. “This could lead to higher prices for consumers and less choice.”
The CMA said it had considered a number of possible remedies to the competition concerns, including requiring Meta to sell Giphy or to divest itself of other assets.
However, the CMA said it had concluded that the only effective way to address the competition concerns was to block the deal.
Meta said it was “disappointed” with the CMA’s decision and would consider its options.
“We believe that the acquisition of Giphy would benefit both consumers and businesses in the UK,” Meta said in a statement. “We are disappointed with the CMA’s decision and will consider our options.”
The CMA’s decision is a blow to Meta, which has been investing heavily in the development of its display advertising business.
The CMA’s decision is also a victory for Twitter, which has been a vocal critic of Meta’s acquisition of Giphy.
Twitter CEO Jack Dorsey said the CMA’s decision was “a victory for competition and for consumers.”
“We are pleased that the CMA has blocked Meta’s acquisition of Giphy,” Dorsey said in a statement. “This is a victory for competition and for consumers.”
Comments