Report: UK may cancel Meta's huge deal
After failing to present documents proving that the deal will not hurt competition, the authorities in the kingdom are expected to cancel the purchase of Giphy, about a year and a half after the completion of the purchase at $ 400 million.
This is a unilateral move that has not been done before against the technology giant
Yinon Ben Shoshan
29/11/2021
Monday, 29 November 2021, 10:09 Updated: 11:23
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Facebook, Meta (Photo: GettyImages)
About a year and a half after the merger, the UK authorities are expected to cancel the Giphy website's purchase deal by Meta in the coming days, the Financial Times reported this morning (Monday).
According to the Competition and Markets Regulator in the UK (CMA), Meta has not presented any documents proving that the deal will not harm competition.
In May 2020, the technology giant acquired Giphy, the world's largest site for creating and sharing GIF files.
According to reports, the deal amount is estimated at $ 400 million even though Gippy's value was estimated at the time at $ 600 million.
According to the Financial Times, last August a competition authority in the UK alerted Meta that it had not yet provided the required information, and now it may cancel the deal retrospectively - a unilateral move not previously made against the technology giant.
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Giphy website (Photo: ShutterStock)
The UK Authority also stressed to Meta that it was required to prove that the deal would allow competitors - including Tiktok and Twitter - and continue to gain access to Giphy, in order to maintain competition.
Last October, Meta was fined £ 50.5 million for violating the order, after it continued to ignore the requirements and violate the provisions.
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