Shubham Sawarkar
The UK’s antitrust authorities have requested Meta to cancel its acquisition of Giphy in May 2020, claiming that it will “reduce competition between social media platforms and the deal has already removed Giphy as a potential challenger in the display advertising market.”
The Competition and Markets Authority (CMA) is concerned that this acquisition could prevent or restrict other platforms’ access to Giphy’s GIFs, potentially driving more traffic to Meta‘s properties, such as Facebook, Instagram, and WhatsApp, which account for 73% of user time spent on social media in the United Kingdom.
Meta is likely to appeal the verdict, but this bold decision sets a significant precedent for future large-scale technology acquisitions. The globe appears to be gearing up to break free from monopolies’ grip.
