Facebook-parent Meta appeals UK ruling on Giphy tie-up
Technology
Facebook announced the purchase of Giphy for in May 2020, in a deal priced at $315 million.
LONDON (AFP) - Facebook’s owner Meta on Monday insisted it should not be forced to sell online GIF creator Giphy by British competition regulators, as it appealed the ruling in court.
The Competition and Markets Authority (CMA) in November found Meta’s purchase of Giphy -- which supplies animated Gifs or mini videos to major social networks -- would give the US behemoth too much market share.
Hitting back, Meta said information made public in court Monday "makes clear this deal promotes competition and improves choices for people".
"The decision to block the deal is wrong on the law and the facts, and the evidence does not support the CMA’s conclusions or remedy," it added.
The case at London’s Competition Appeal Tribunal is expected to last around a week, with a ruling likely at a later date.
For the benefit of UK consumers, the CMA on Monday said it would "vigorously" defend its decision requiring Facebook to sell Giphy.
It added in a statement that such an outcome would promote "competition and innovation in digital advertising" and ensure "rival social media providers can get competitive access to Giphy’s services".
Facebook announced the purchase of Giphy for in May 2020, in a deal priced at $315 million.
UK regulators have also ordered Meta to also pay more than $1.9 million in fines for breaching regulatory rules over its acquisition of Giphy.
