Facebook is the leading and the biggest tech firm in the world with millions of daily active users. The tech firm knows the hold it has on the social media space and the impacts it can do in the world of technology and hence the social network is always trying to play big.
The tech firm, last year acquired a platform called ‘Giphy’, which is an online database and search engine that allows users to search for and share short looping videos with no sound, that resemble animated GIF files.
While Facebook had big plans with it acquiring GIPHY, the plans got cut short when CMA intervened.
UK’s Competition and Markets Authority ordered Facebook (now Meta) to keep its collaboration on hold and provide CMA with complete details of the acquisition. The company was ordered not to take any further moves with the acquisition until CMA approves. However, Facebook did not listen to this and META was charged around £50.5 million as a fine to go against the implemented rules in October.
However, while this was old news, it seems as if Facebook is being forced to sell GIPHY. According to a new PR by CMA, META may be made to sell its multi million dollars company it acquired last year.
So, there must be reason why CMA is making Facebook give up its acquisition of GIPHY right?
Well, CMA believes that Facebook is slowly acquiring big names in the social media world and has control over all big aspects of the market, which ultimately is erasing social competition for them and making them a monopolist within the market.
When Facebook was questioned as to how they feel on the block and the reason behind it, the tech firm denied any claims of being a monopolist company, however, did not comment on the statement about their decision on whether they will sell GIPHY or not.
While CMA has been successful in making companies give up their acquired companies, things look a little different with Facebook. If Facebook does not give up its collaboration, it will be the first ever company that CMA won’t be able to overturn.
The decision however will soon be announced, so let’s wait and watch.
Read next: Here’s How Much Apple, Google, Facebook Earns Every Second
The tech firm, last year acquired a platform called ‘Giphy’, which is an online database and search engine that allows users to search for and share short looping videos with no sound, that resemble animated GIF files.
While Facebook had big plans with it acquiring GIPHY, the plans got cut short when CMA intervened.
UK’s Competition and Markets Authority ordered Facebook (now Meta) to keep its collaboration on hold and provide CMA with complete details of the acquisition. The company was ordered not to take any further moves with the acquisition until CMA approves. However, Facebook did not listen to this and META was charged around £50.5 million as a fine to go against the implemented rules in October.
However, while this was old news, it seems as if Facebook is being forced to sell GIPHY. According to a new PR by CMA, META may be made to sell its multi million dollars company it acquired last year.
So, there must be reason why CMA is making Facebook give up its acquisition of GIPHY right?
Well, CMA believes that Facebook is slowly acquiring big names in the social media world and has control over all big aspects of the market, which ultimately is erasing social competition for them and making them a monopolist within the market.
When Facebook was questioned as to how they feel on the block and the reason behind it, the tech firm denied any claims of being a monopolist company, however, did not comment on the statement about their decision on whether they will sell GIPHY or not.
While CMA has been successful in making companies give up their acquired companies, things look a little different with Facebook. If Facebook does not give up its collaboration, it will be the first ever company that CMA won’t be able to overturn.
The decision however will soon be announced, so let’s wait and watch.
Read next: Here’s How Much Apple, Google, Facebook Earns Every Second