Facebook owner Meta has been told by the UK competition watchdog to sell popular animated images platform Giphy in Britain’s first such move against so-called Big Tech in its efforts to bolster regulation of the sector.
The Competition and Markets Authority (CMA) said it had found that last year’s acquisition of Giphy would reduce competition between social media platforms and in display advertising.
Facebook, which was recently rebranded as Meta Platforms, said it could appeal against the CMA’s decision. It has four weeks to appeal.
“The tie-up between Facebook and Giphy has already removed a potential challenger in the display advertising market,” said Stuart McIntosh, chair of the independent investigation on Facebook-Giphy for the CMA.
“By requiring Facebook to sell Giphy, we are protecting millions of social media users and promoting competition and innovation in digital advertising.”
Facebook said it disagreed with the decision.
“We are reviewing the decision and considering all options, including appeal,” a Meta spokesperson said in a statement.
The CMA in October fined the…
