1. Home
  2. >>
  3. Meta: the Antitrust is about to block the purchase of Giphy

Meta: the Antitrust is about to block the purchase of Giphy



Uncategorized

Meta: the Antitrust is about to block the purchase of Giphy


L’Antitrust English would stand to block the acquisition of Giphy from Half (which at the time of the purchase was still called Facebook). The transaction from 400 million dollars had arrived in May 2020 and already the following month the competition authorities of the UK and Australia were already investigating the matter. Now the verdict should come and he doesn’t seem happy for Meta.

The Antitrust Authority will block Meta’s purchase of Giphy

The report comes from the Financial Times, which reports statements from people close to the decision taken by the British Antitrust (CMA). There is no date for the announcement yet but it should be imminent: the Guarantor has until December 1 to make a decision, so the next few hours will be decisive.

But the CMA had already announced this August that the deal would create problems with the competition and that the only possible resolution was the sale by Meta of Giphy. In fact, according to the Guarantor, the ownership of the platform would have given a unfair advantage in Meta, as Snapchat and TikTok also use Giphy.

The British Antitrust Authority has the possibility to intervene because, although both companies are American, if an acquisition leads to the same hands more than 25% of a given market. And together Meta and Giphy control 80-90% of animated sticker libraries. The UK agency has already fined Facebook $ 70 million for failing to provide enough information on the deal. A fine disputed by Meta, who assures that he has cooperated.

Many experts are betting on the blocking of the acquisition, which would be a blow to one of the big American companies in Silicon Valley. But in fields outside of technology, the Antitrust’s ability to reverse deals isn’t all that great. But this could be there first time that a deal of this magnitude by Big Tech is stopped.

The next few hours will therefore be decisive for this agreement. We will keep you updated if there is any news.