Meta says it will sell off Giphy following order from UK competition watchdog - The Verge

Facebook and Instagram’s parent company say it will sell off GIF library Giphy following an order from the UK’s Competition and Markets Authority (CMA). Meta, then-Facebook, bought Giphy in 2020.

The Verge homepageThe Verge homepageThe VergeThe Verge logo./Tech/Reviews/Science/Entertainment/MoreMenuExpandThe VergeThe Verge logo.MenuExpandMeta/Tech/BusinessMeta says it will sell off Giphy following order from UK competition watchdogMeta says it will sell off Giphy following order from UK competition watchdog / Meta confirmed to The Verge that it will sell off all of the US-based Giphy’s global operations. By James Vincent

Share this story Illustration by Alex Castro / The VergeFacebook and Instagram parent company Meta says it will accept a ruling by the UK competition watchdog to divest itself of social media GIF library Giphy.

A spokesperson for Meta, Matthew Pollard, told The Verge: “We are disappointed by the CMA’s decision but accept today’s ruling as the final word on the matter. We will work closely with the CMA on divesting Giphy.” When asked if the divestment would apply to all of Giphy’s international operations, Pollard said: “Yes, this applies globally.”

Meta was originally ordered to sell Giphy last year but appealed the ruling. Today, the UK’s Competition and Markets Authority (CMA) announced that Meta had failed on five of the six objections raised in its appeal. The CMA said that the acquisition should be reversed on the grounds that it “could allow Meta to limit other social media platforms’ access to GIFs, making those sites less attractive to users and less competitive.”

In the past, the CMA’s divestment orders have led to companies selling off only part of global operations, but Meta has confirmed it will sell off the US-based Giphy in its entirety. Generally, the CMA oversees such sales, judging the suitability of prospective buyers.

https://www.theverge.com/2022/10/18/23410487/meta-sell-off-giphy-following-uk-cma-competition-ruling

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