Crisis is again deepening after Meta Platforms plans to buy GIF search engine Giphy Inc for $315 million. The UK antitrust watchdog has ordered Meta to explore the possibility of selling Giphy Inc. The deal seems to be in trouble again after the watchdog objected. META has accepted its defeat considering it as the final verdict.
It is believed that this has put an end to the uncertainty of the deal. The Competition and Markets Authority (CMA) said on Tuesday that it is replacing Meta with Giphy Inc. Will order to sell. This marks a turning point in the deal given the appeals court’s decision to send the matter back to the regulator for reconsideration.
The order said the buyer would be identified later. A META spokesperson commented, “We are disappointed with the CMA’s decision and consider it a final decision. We are grateful to the Giphy team and wish them all the success, the spokesperson said.
Big Blow for Meta
The UK surveillance system has undergone many changes after Brexit. The UK’s Watch Dog Agency has intensified investigations into big tech companies since receiving new powers. Its digital markets unit, which oversees the operations of the world’s largest technology firms, is currently hoping to get more powers from the government to help them do their jobs properly.
Efforts to avoid unilateral trade
The CMA last year ordered META to re-open the deal after a thorough investigation. It was found in the investigation that this deal may reduce competition among social-media platforms. META appealed the findings to a London court, calling these findings “irrational”. The matter was again sent back to the agency for the judges to take a final call on the legality of the transaction, raising concerns over the investigation process.
Stuart Mackintosh, chairman of the independent investigative group, said in a statement that the deal would significantly reduce competition in the market and leave no one to challenge Meta in the advertising market. Furthermore, the deal is giving Meta the ability to further expand its power in the social media market. Through this order, the regulator has forced a big tech firm to reopen a nearly completed deal.
What will be the future of Giphy Inc
At the moment it is not clear who may be in the race to buy GIF maker Giphy. According to documents made public during the investigation, Giphy itself has stated that it lacks interested buyers. It has said that the use of GIFs had started to decline since the deal was announced two years ago and is now almost out of circulation.
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