Meta is appealing the decision of the British regulator; Which forces the company to sell Giphy. The appeal refers to the U.K. Competitiveness and Market Authority Capability Test; Force the tech giants to disintegrate. A Meta spokesman said the company intends to appeal the CMA’s decision to GIPHY. They will also try to suspend the CMA order on divestiture. According to the firm, the decision to block the transaction is incorrect according to law and facts. Also, the evidence does not support the CMA findings or remedies.
The U.K. Competition Tribunal hears the appeal. The hearing may take place in the spring of 2022. On November 30, the U.K.’s competition regulator ordered Facebook – which has just become Meta; Confiscated all its assets from Giphy; After submission in May 2020. In fact, the investments are valued at $315 million. The order was the first global example of an antitrust bailiff ordering a Big Tech firm to disband.
In addition, the CMA has raised competition concerns over the move. Giphy may be a potential competitor to Meta in the advertising market in the future. Meta may look at block access to Giphy GIFs for social media competitors. Twitter and TikTok may be among them.
The CMA said an effective remedy could be a complete alienation of Giphy. The deal is still under investigation by the U.S. Federal Trade Commission. It is also suing the company to force it to cancel its WhatsApp and Instagram purchases.
We wonder what kind of decision will be made. It is worth noting that 2021 was quite difficult and full of scandals for Meta. Several states have sued the firm for data protection. The company has numerous plans for 2022. However, a lot depends on Its income and financial well-being.