Antitrust Claims May Block Facebook’s $400 Million Giphy Acquisition
The Competition and Markets Authority have threatened to dissolve Facebook’s £289m acquisition of Giphy based on fruitless allegations the merger would be anti-competitive. The only catch is: Facebook and Giphy are not competitors. Breaking up this deal on antitrust grounds will have international consequences.
Regulators across the world are becoming increasingly hostile towards Facebook, as they attempt to tackle its dominance. The social media giant has found itself at the center of antitrust accusations in the United States, India, Brazil — and, now, the UK.
After a months-long probe, the CMA concluded that the acquision of Giphy has “resulted or would result in a substantial lessening of competition in social media and display advertising, harming social media users and businesses in the UK.” Yet, the 300-page report scrambles to find any evidence of anti-competitive conduct, and instead relies upon a convoluted claim of potential competition.
