CMA's Final Order Asks Meta To Sell Giphy

(RTTNews) - The UK's Competition and Markets Authority or CMA, ordered Meta Platforms, Inc. (META), on Tuesday to sell its animated GIF platform, Giphy, as its acquisition adversely impacts the market competition.

CMA also found that the acquisition of Giphy by Meta limits other social media platforms' access to GIFs, making those sites less attractive to users and less competitive.

The market regulator concluded that Meta would be able to raise its already significant market power by denying or limiting other social media platforms' access to Giphy GIFs, thereby pushing people to Meta-owned sites, which already make up 73 percent of user time spent on social media in the UK.

Meta had terminated Giphy's advertising services upon acquisition, removing a potential ad tool for UK businesses. The CMA considers this particularly concerning given Meta controls almost half of the 7 billion pounds display advertising market in the UK.

In July, the acquisition was given a reprieve after the UK's Competition Appeals Tribunal or CAT challenged the findings of the CMA that the acquisition would adversely impact the competition.

The CAT found that the CMA was unable to properly consult and had wrongly excised portions from its decision. In return, CMA had replied that it would reconsider its ruling.