Facebook owner Meta gives reasons for British objection to Giphy sale


Facebook owner Meta has appealed against a UK competition authority that it has to sell Giphy, including challenging its finding that the deal removed a potential competitor in display advertising.

Meta said last month it had appealed the competition and market regulator (CMA) decision to block the Giphy acquisition in 2020.

It was the first time the UK regulator blocked a major digital takeover and this signaled a crucial shift in its scrutiny of “big tech” companies.

The Competition Appeal Tribunal published a summary of Meta’s motion on Wednesday, setting out its contest on six grounds.

The U.S. company, which owns Instagram and WhatsApp, as well as Facebook, said the CMA had failed to review its offering to ensure Giphy can continue to provide services to rivals such as Snapchat and TikTok on the same terms.

The decision of the regulatory authority was also procedurally flawed, said Meta.

The CMA directed Meta to sell Giphy, which it acquired in May 2020 for a reported $ 400 million (approximately Rs.2,980 billion) after ruling in November that the remedial measures offered by the U.S. company addressed their concerns not answered.

© Thomson Reuters 2022

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