Stuart McIntosh, chair of the watchdog’s independent group that carried out the investigation, said the deal “has already removed a potential challenger in the display advertising market.” “Together, Meta and Giphy would enhance Giphy’s product for the millions of people, businesses, developers and API partners in the UK and around the world who use Giphy every day, providing more choices for everyone.”Īfter consulting with other businesses and groups and assessing alternative solutions proposed by Facebook, the watchdog said it “concluded that its competition concerns can only be addressed by Facebook selling Giphy in its entirety to an approved buyer.”
“Both consumers and Giphy are better off with the support of our infrastructure, talent, and resources,” the company said. It’s the first time the watchdog has sought to unwind a tech deal, marking an escalation by regulators seeking to tame digital giants.įacebook, which has been renamed Meta, said it disagreed with the decision and is considering all its options, including an appeal. The regulator also was concerned that the deal removed potential competition from the U.K.’s 7 billion pound ($9.3 billion) display advertising market, of which Facebook controls half. Facebook's Giphy Deal Causes Competition Concerns, Says U.K.