Meta to sell GIPHY after UK decree

Competition and Trademark AuthorityCMA) has ordered Goal Get rid of the purchase GIPHYA company he wanted to acquire for $400 million.

The decree comes after the US company lost its legal battle to the entity in the Competition Appeal Court.

Reasons for the decision

The CMA He investigated the purchase since May 2020, When Facebook announced the significance of the said acquisition.

For the entity that GoalWith its networks on Instagram, Facebook and WhatsApp, it maintains the largest repository of GIFs, It would hurt the competition on the rest of the social networks.

Goal It dismissed these allegations and appealed the sale order issued in November 2021 GIPHYarguing that the improvements would eventually provide “more options for everyone”.

Now, after further review of the appeal process, CMA Note additional reason to believe that “the deal may harm competition by restricting competitors’ access to GIFs, requiring unfavorable terms, and reducing digital advertising options.”

Meta will accept the decision

after the decision, Goal He issued a statement accepting it.

“We are disappointed with the decision CMABut we accept today’s ruling as the last word on the matter.” “We will work closely with CMA in the filter from GIPHY. We are grateful to the team during this turbulent time for their work and wish them well. We will continue to assess opportunities, including through acquisitions, to bring innovation and choice to more people in the UK and around the world.”

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