Appeal of Giphy acquisition by Meta adjourned by court

Meta made an appeal against competition regulator which ruled that it should sell Giphy, the online GIF creator. The appeal was adjourned by the British court. According to the Competition and Markets Authority, purchase of Giphy which offers short videos and animated GIFs to social media platforms would increase its market share by a considerable amount. After hearings spanning four days, the case was postponed at London’s Competition Appeal Tribunal with judge Marcus Smith ruling that the case will be heard and judged at a later date.
The CMA said that it is closely tied to its decision that Facebook should offer Giphy for sale. According to it, Facebook selling Giphy will encourage innovation and competition in digital advertising ensuring that other social media networks get access to the services of Giphy, which was acquired by Facebook for $315 million in May 2020.
In court Facebook clarified that the anti-competition factor of the deal was not illustrated by the regulator and the fact that there is existence of other suppliers of GIF.
Meta has been ordered to pay fine of £1.5 million, because of disobeying regulatory rules due to its acquisition of Giphy.

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