Last month, the CMA fined Facebook, recently renamed Meta, 50.5 million pounds (C $ 85.7 million) as part of its merger with Giphy, which specializes in short internet animations ( GIF files), for continuing to integrate the two companies despite an ongoing investigation.
In August of this year, the regulator had already warned Facebook that it might have to sell Giphy.
In June 2020, he issued an injunction to stop the integration process between Facebook and Giphy, whose takeover, unveiled in May 2020, was estimated at 400 million US dollars (513 million Canadian dollars).
This acquisition allowed Meta to integrate Giphy’s huge library into Instagram, its photo and video sharing service.
Facebook’s too much bite?
The CMA concluded
that Facebook could increase its market share, which is already significant compared to other social networks, by limiting or preventing access to GIF images from other platforms, while Facebook and its subsidiaries WhatsApp and Instagram% of usage time spent on social media in UK “,” text “:” already account for 73% of usage time spent on social media in UK “}}”>already have 73% of the usage time spent on social media in the UK, details the institution in a press release released on Tuesday.
The CMA was also concerned that Meta would change the criteria for accessing Giphy’s moving images by forcing its rivals TikTok, Twitter or Snapchat.
share more user data.
It could also favor Facebook in online advertising as the group led and co-founded by Mark Zuckerberg already controls nearly half of this market in the United Kingdom, which totals 7 billion pounds (12 billion Canadian dollars), specifies the CMA.
The regulator concluded, despite alternatives offered by Facebook, that the competitive risks posed by this merger could not be resolved
that if Facebook sold Giphy entirely to an approved buyer.
disapprove of this decision and is considering his options, including that of appealing, according to a spokesperson, who says
the public and Giphy are in a better position with the support of [leur] infrastructure, [leurs] talents and [leurs] resources.
The giants of the web under the magnifying glass
The technology giant is targeted by numerous investigations and lawsuits on the competition front and on the risks posed by its platform for young people, following revelations from an American whistleblower on their dangerousness.
The member countries of the European Union (EU) also adopted last Thursday a common position approving in broad outline the draft European legislation to regulate the Internet and put an end to the abuses of power by the digital giants.
AJ Bell analyst Danni Hewson points out that “And that she will”certainly make technology companies think “,” text “:” the gendarme of British competition has taken a daring step “and that it will” certainly make technology companies think “}}”>the gendarme of the British competition took a daring step “and that it was” certainly going to make technology companies think.
Neither Giphy nor Meta are UK based, but the fact that so many Brits use the social media sites led the regulator to act and demand that the transaction, which has already been made, be canceled, adds the analyst, who believes that the CMA order will set a precedent.
Meta will no doubt consider challenging this decision. He has a lot to lose, after months of integration, if he is forced to sell.