Facebook is one of the leading tech giants in the world. The tech firm has now changed its company name to Meta and has several well-known applications under its name starting off with Messenger, WhatsApp, Oculus, and Instagram.
However, with so many names acquired to it, Facebook is nowhere near stopping, however some people believe that it should stop though. In 2020, Facebook acquired Giphy, an application which gives users access to many GIFs and the ability to create/share them too. However, as soon as Facebook signed the deal many accusations were brought against it and the company was ordered by the CMA (Competition and Markets Authority) that they need to sell GIPHY as the acquisition of the platform is anti-competitive.
Why is this?
Well, to start off Facebook/Meta already has many leading applications under its name which already has dropped down the market competition with Facebook taking the market lead by a huge margin. In the world of social media, while there are leading apps and software, a single company having the lead because they managed to acquire all the top competitions seems wrong. Hence, Facebook's GIPHY deal would have impacted Snapchat and TikTok features in many ways.
So, to maintain the competitions and to ensure that things worked perfectly in the social media space, CMA ordered Facebook to sell GIPHY immediately. However, Facebook did not comment at that moment.
Facebook, when questioned now about the intensity of the situation it says that it believes CMA is playing unfair with it. The tech giant has come a long way and even if it acquires applications it's giving each one individual attention and working on it differently. If other tech giants are threatened by the intensity of the situation, they are also free to grow.
However, CMA is strict on making Facebook sell the GIPHY and Facebook right now is trying its best to change their minds. Whatever will happen will come forward in a few days, so let’s see if Facebook is able to let go, or if the British competition watchdog will give up on it.
Read next: Facebook on the verge to ban the health research ads to stop the easy access of consumers' medical data
However, with so many names acquired to it, Facebook is nowhere near stopping, however some people believe that it should stop though. In 2020, Facebook acquired Giphy, an application which gives users access to many GIFs and the ability to create/share them too. However, as soon as Facebook signed the deal many accusations were brought against it and the company was ordered by the CMA (Competition and Markets Authority) that they need to sell GIPHY as the acquisition of the platform is anti-competitive.
Why is this?
Well, to start off Facebook/Meta already has many leading applications under its name which already has dropped down the market competition with Facebook taking the market lead by a huge margin. In the world of social media, while there are leading apps and software, a single company having the lead because they managed to acquire all the top competitions seems wrong. Hence, Facebook's GIPHY deal would have impacted Snapchat and TikTok features in many ways.
So, to maintain the competitions and to ensure that things worked perfectly in the social media space, CMA ordered Facebook to sell GIPHY immediately. However, Facebook did not comment at that moment.
Facebook, when questioned now about the intensity of the situation it says that it believes CMA is playing unfair with it. The tech giant has come a long way and even if it acquires applications it's giving each one individual attention and working on it differently. If other tech giants are threatened by the intensity of the situation, they are also free to grow.
However, CMA is strict on making Facebook sell the GIPHY and Facebook right now is trying its best to change their minds. Whatever will happen will come forward in a few days, so let’s see if Facebook is able to let go, or if the British competition watchdog will give up on it.
Read next: Facebook on the verge to ban the health research ads to stop the easy access of consumers' medical data