Facebook (Meta) forced to sell Giphy

ended 30. November 2021

Facebook’s parent company Meta has been directed to sell GIF-sharing platform Giphy by a UK watchdog over competition fears. The Competition and Markets Authority (CMA) said the decision was “protecting millions of social media users and promoting competition and innovation in digital advertising”.

The independent CMA panel reviewing the merger concluded that the deal had increased Meta’s already significant market power by denying or limiting other platforms’ access to Giphy GIFs, driving more traffic to Meta-owned apps and changing the terms of access by requiring some rival platforms to provide more user data in order to access Giphy.

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3 responses from the Newspage community

Lee Marples, Director of digital agency, Think3: "This is a sensible ruling by the Competition and Markets Authority and should be applauded. Given the sheer scale of the likes of Meta, it is absolutely imperative to ensure a level playing field. Giphy has fast become an easy way to increase brand awareness but how many people actually knew that it was owned by Meta, or Facebook as most of us still know it? Very few, I suspect. This ruling will enable other platforms to innovate while restricting the amount of data that the Metaverse will hold on us in the future."
Amazing how quickly regulators move when a company announces plans to launch world domination via a metaverse!
Young Writers
The Meta-verse's continuous takeover of the majority of our digital spaces poses growing threats to the safety of our collective online presence. Allowing Meta to monopolise and dominate these spaces creates an unaware tunnel vision for the consumer, the decision from the CMA panel helps to somewhat minimise this but is only a small step in the right direction.