The United Kingdom’s antitrust watchdog has blocked Facebook’s acquisition of Giphy and ordered the social network to sell off the GIF-sharing platform, saying the deal hurts social media users and advertisers by stifling competition for animated images. The Competition and Markets Authority said Tuesday that the deal would let Facebook “increase its already significant market power” by denying or limiting other platforms’ access to Giphy GIFs and driving traffic to Facebook-owned sites. The regulator also was concerned that the deal removed potential competition from the U.K.'s 7 billion pound ($9.3 billion) display advertising market, of which Facebook controls half. “By requiring Facebook to sell Giphy, we are protecting millions of social media users and promoting competition and innovation in digital advertising.”New York-based Giphy’s library of short looping videos, or GIFs, are a popular tool for internet users sending messages or posting on social media. The Competition and Markets Authority said in a provisional decision in August that Facebook should be forced to sell Giphy.

Source: New York Times November 30, 2021 22:52 UTC