Facebook slams UK antitrust watchdog over call to sell Giphy, Telecom News, ET Telecom
London: Facebook criticizes the British competition observer’s interim decision ordering its sale Gifs because the acquisition of the company is said to stifle competition for animated images. The strongly formulated response of the social network to Competition and Markets Authority sets the beginning of a battle for the future of Giphy.
In a letter Wednesday, Facebook said the guard’s decision contained “fundamental errors.”
The US company questioned whether the government’s call to sell Giphy after its acquisition last year would be effective or feasible.
“The complete CMA removal tool is extremely unreasonable and disproportionate,” Facebook said.
Giphy’s library of short cyclic videos or GIFs is a popular tool for Internet users sending messages or posting on social media.
The security guard began an investigation into the acquisition shortly after Facebook announced a $ 400 million deal.
He found that the acquisition would harm competition for GIFs among social media platforms and the competition for digital advertising.
Facebook said it had “serious questions” about whether the UK regulator could impose a global order on a company to sell a business unit and whether it would be effective – issues it said should be considered “before taking the final intrusive step. order “sale of a company that does not do business in the UK”.
The CMA is expected to receive its final report on the deal on October 6.