Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Meta appealing UK ruling ordering it to sell Giphy

Meta appealing UK ruling ordering it to sell Giphy

Facebook owner says British watchdog's 'decision to block the deal is wrong on the law and the facts'

Facebook owner Meta Platforms, Inc. says it is appealing a United Kingdom watchdog's ruling ordering the social media giant to sell New York-based animated picture platform Giphy over antitrust concerns.

Last month, Britain's Competition and Markets Authority ordered Meta to unwind its reportedly $400 million acquisition of Giphy, which was completed in May of 2020 while Meta was still named Facebook.

In this photo illustration a Giphy logo is seen on a smartphone screen with a Facebook logo in the background. 


CMA argued that through its ownership of Giphy, Meta "would be able to increase its already significant market power in relation to other social media platforms" by "denying or limiting other platforms' access to Giphy GIFs, driving more traffic to [Meta]-owned sites – Facebook, WhatsApp and Instagram – which already account for 73% of user time spent on social media in the UK." The watchdog had previously argued that the only other major GIF-provider is Google's Tenor.

Meta is now pushing back against the order.

"We are appealing the CMA’s GIPHY decision and will seek a stay of the CMA’s order to divest," the social media giant said in a statement on Thursday.

Facebook CEO Mark Zuckerberg speaks during a live-streamed virtual and augmented reality conference to announce the rebrand of Facebook as Meta, in this screen grab taken from a video released October 28, 2021.


"The decision to block the deal is wrong on the law and the facts, and the evidence does not support the CMA's conclusions or remedy," Meta's statement continues, arguing, "Together, Meta and GIPHY would improve GIPHY’s product for the millions of people, businesses, developers and API partners in the UK and around the world who use GIPHY every day, providing more choices for everyone."

A person familiar with the deal told FOX Business that Giphy approached Facebook (and other potential buyers) about being acquired, not the other way around.

The CMA's move was unprecedented not only because it was the first time the antitrust watchdog has demanded the break-up of a tech acquisition, but it raised alarms for American business groups who question the U.K. government's authority to step in on a deal between U.S. companies.

(L) British Prime Minister Boris Johnson. (Photo by Tom Nicholson-WPA Pool/Getty Images) (R) Mark Zuckerberg, chief executive officer and founder of Meta.


"This foreign action to block acquisition activity of two U.S.-based companies is unprecedented, and startling," Small Business & Entrepreneurship Council president and CEO Karen Kerrigan said in a statement following CMA's ruling.

"America’s dynamic and productive startup ecosystem is the jewel of the global marketplace, and the U.K.’s bold overreach directly undermines our innovative and investment environment," Kerrigan continued. "This is a serious matter for the Biden Administration and Congress to address, as the U.K. Competition and Market Authority’s action could snowball and cause disruption for a broad range of U.S. sectors, as well as the health of global entrepreneurship and functioning of capital markets."

Newsletter

Related Articles

0:00
0:00
Close
Unelected PM of the UK holds an emergency meeting because a candidate got voted in… which he says is a threat to democracy…
Farmers break through police barriers in Brussels.
Ukraine Arrests Father-Son Duo In Lockbit Cybercrime Bust
US Offers $15 Million For Info On Leaders Of Cybercrime Group Lockbit
Apple warns against drying iPhones with rice
Alexei Navalny: UK sanctions Russian prison chiefs after activist's death
German economy is in 'troubled waters' - ministry
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Tucker Carlson says Boris Johnson wants "a million dollars, in Bitcoin or cash, from Tucker Carlson to talk about Ukraine.
Russia is rebuilding capacity to destabilize European countries, new UK report warns
EU Commission wants anti-drone defenses at Brussels HQ
Von der Leyen’s 2nd-term pitch: More military might, less climate talk
EU Investigates TikTok for Child Safety Concerns
EU Launches Probe Into TikTok Over Child Protection Under Digital Content Law
EU and UK Announce Joint Effort on Migration
Ministers Confirm Proposal to Prohibit Mobile Phone Usage in English Schools
Avdiivka - Symbol Of Ukrainian Resistance Now In Control Of Russian Troops
"Historic Step": Zelensky Signs Security Pact With Germany
"Historic Step": Zelensky Signs Security Pact With Germany
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Tucker Carlson grocery shopping in Russia. This is so interesting.
France and Germany Struggle to Align on European Defense Strategy
‘A lot higher than we expected’: Russian arms production worries Europe’s war planners
Greece Legalizes Same-Sex Marriage and Adoption Rights
Russia "Very Close" To Creating Cancer Vaccines, Says Vladimir Putin
Hungarian Foreign Minister: Europeans will lose Europe, the Union's policy must change drastically
Microsoft says it caught hackers from China, Russia and Iran using its AI tools
US Rejects Putin's Ceasefire Offer in Ukraine
The Dangers of Wildfire Smoke and Self-Protection Strategies
A Londoner has been arrested for expressing his Christian beliefs.
Chinese Women Favor AI Boyfriends Over Humans
Greece must address role in migrant vessel disaster that killed 600: Amnesty
Google pledges 25 million euros to boost AI skills in Europe
Hungarian President Katalin Novák Steps Down Amid Pardon Controversy
Activist crashes Hillary Clinton's speech, calls her a 'war criminal.'
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Trudeau reacts to Putin's mention of Canadian Parliament applauding a former Ukrainian Nazi in his interview with Tucker Carlson.
The Spanish police blocked the farmers protest. So the farmers went out and moved the police car out of the way.
Volodymyr Zelenskiy fires top Ukraine army commander
Tucker Carlson's interview with Vladimir Putin raises EU concerns
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
Russia's Economy Expands by 3.6% Due to Increased Military Spending
Ukraine MPs Vote To Permit Use Of Dead Soldiers' Sperm
German Princess Becomes First Aristocrat To Pose Naked On Playboy Cover
UK’s King Charles III diagnosed with cancer
EU's Ursula von der Leyen Confronts Farmer Protests Amid Land Policy Debates
Distinguishing Between Harmful AI Media and Positive AI-Generated Content: A Crucial Challenge for the EU
Tucker Carlson explains why he interviewed Putin
Dutch farmers are still protesting in the Netherlands against the government, following the World Economic Forum's call for 'owning nothing.'
Hungarian Prime Minister Viktor Orbán stands up for European farmers and says, 'Brussels is suffocating European farmers.
×