JAKARTA - Britain's competition regulator ordered Facebook owner Meta Platform Inc. to sell animated graphics platform Giphy on Tuesday, October 18 after its view that their acquisition had reduced innovation in the advertising market and needed to be upheld by a court in the summer.
Meta said it would receive a Competition and Markets Authority (CMA) order to cancel the 2020 deal.
"We are disappointed by the CMA's decision but accept today's decision as final on this matter," a Meta spokesperson said in a statement. "We will work closely with the CMA to release Giphy."
British regulators blocked the deal, a reported $400 million, in November 2021 due to concerns that Meta could deny or restrict competitors' access to Giphy GIFs.
They are also concerned about the loss of potential competitors in display advertising, even though Giphy has no presence in this sector in the UK.
Meta appealed the ruling, but the court upheld the CMA's decision on five of the six grounds in June.
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The CMA said it had considered new submissions from Meta and Giphy and additional evidence since the appeal, but had not changed its view.
"This deal will significantly reduce competition in the two markets," said Stuart McIntosh, chairman of the independent inquiry group.
"This has resulted in the elimination of potential challengers in the UK display ad market, while also giving Meta the ability to further leverage its substantial market power on social media," added McIntosh. "The only way to solve this is by selling Giphy".
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