Meta, the parent company of Facebook, has been ordered to sell Giphy due to the "risk of a substantial lessening of competition in the social media and display advertising market."
As reported by CNBC, U.K. competition regulators made their final verdict known on Tuesday, October 18, and ordered Meta to "sell Giphy, in its entirety, to a suitable buyer." As of this writing, it is not clear who any potential buyers are.
Following the ruling, Meta says it is "disappointed by the CMA’s decision but accept today’s ruling as the final word on the matter.”
“We will work closely with the CMA on divesting GIPHY,” the Meta spokesperson told CNBC. “We are grateful to the GIPHY team during this uncertain time for their business, and wish them every success. We will continue to evaluate opportunities - including through acquisition - to bring innovation and choice to more people in the UK and around the world."
Meta announced that it would be acquiring the GIF company Giphy in May 2020 for $400 million. The deal came under scrutiny by the UK's Competition and Markets Authority (CMA), as it was said to be potentially anti-competitive as Meta controls "nearly half of the U.K.’s £7 billion ($7.9 billion) display advertising market."
This move, according to the CMA, could also lead to Facebook restricting or removing access to Giphy from its competitors or potentially requiring them to provide more data to keep their access.
The decision marks a big moment in the fight between global regulators and Big Tech companies as this marks the first time one of these completed deals has officially been undone by a group like the CMA.
Elsewhere in the world of Meta also sits the announcement of the Meta Quest Pro VR headset that will cost $1,499 and was designed with a focus on work productivity.
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Adam Bankhurst is a news writer for IGN. You can follow him on Twitter @AdamBankhurst and on Twitch.
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