In this screenshot taken from a video released on October 28, 2021, Facebook CEO Mark Zuckerberg speaks during a live-streamed virtual and augmented reality conference announcing the renaming of Facebook as Meta.
Facebook | Via Reuters
London – Meta, Facebook’s parents want to sell GIF-sharing site Giphy, according to UK competition watchdog.
The Competition and Markets Commission said on Tuesday that the deal could be detrimental to social media users and UK advertisers. Meta said it did not accept the decision and would consider the appeal.
The controller decided that the meta acquisition of Giffy would reduce competition between social media sites. It said the deal had already removed Giffy as a potential challenge in the visual advertising market.
One group has found that by denying or limiting access to other sites for Giphy GIFs, Facebook can increase its already significant market power over other social media sites.
In turn, the team concludes that Facebook, WhatsApp and Instagram send more traffic to Facebook-owned sites – which is already 73% of the user time spent on social media in the UK.
The CMA also said that Meta could change Giphy’s access rules for GIFs. For example, it may require something like TikTok, Twitter And provide more user data in order to access Snapchat Giphy GIFs.
Before the deal in May last year, Giphy launched its own advertising services and the UK was considering expanding Giphy’s advertising services to countries outside the United States.
While promoting innovation from other social media sites and advertisers, the CMA found that Giphy’s advertising services could compete with Facebook’s own visual advertising services.
At the time of the merger, Facebook had closed Giphy’s advertising services. The CMA said this was a matter of concern, especially as Facebook controls almost half of the விளம்பர 7 billion ($ 9.4 billion) display advertising market in the UK.
Stuart McIntosh, chairman of the Independent Commission of Inquiry, said in a statement on Tuesday that the deal had already removed the potential challenge in the visual advertising market.
“By demanding that Facebook sell Giphy, we protect millions of social media users and promote competition and innovation in digital advertising.” It is unclear how long the meta will sell Giffy.
“We do not accept this decision,” a Meta spokesman said Tuesday. “We are reviewing the decision and considering all options, including the appeal.”
In August, CMA Said It tentatively found that the acquisition of meta (then known as Facebook) gifi would harm competition between social media sites and eliminate a potential challenge in the visual advertising market.
At the time, the CMA said the company should withdraw from the contract It is said to be worth $ 400 million, And sell Giphy if its competing concerns are finally confirmed.
When the deal was announced, Facebook said it would like to further integrate Giphy into the Instagram processor so that “people can find the right way to express themselves.”
CMA Facebook was fined £ 50.5 million in October for failing to provide regular updates showing compliance with the order. Despite repeated warnings, it said Facebook “significantly limited the scope of those updates”.
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