UK antitrust watchdog launches investigation into Facebook's acquisition of Giphy

In context: Giphy serves over 10 billion GIFs around the web every day. Facebook acquired it to add more tools to its social media arsenal, but it turns out that the takeover has raised too many questions, so antitrust regulators have paused it until they can find some answers.

Facebook announced last month that it had bought animated picture platform Giphy with the intention of integrating it with its Instagram team. According to unnamed sources cited by Axios, the deal is worth around $400 million, making it smaller but not insignificant in comparison with Instagram, which was snapped for $1 billion in 2012.

Instagram went on to grow beyond a $100 billion valuation, and you’d have to imagine that Giphy will grow further now that it’s operating under the Instagram umbrella. However, there’s now a bump on that road as the acquisition is being investigated by the UK Competition and Markets Authority (CMA).

The antitrust watchdog said it has opened the investigation in response to concerns that Facebook’s acquisition of Giphy could reduce the competition in one or more markets. The CMA also issued an “initial enforcement order” that prevents the transfer of assets and staff between the two companies, as well as the integration of Giphy’s tech inside any of Facebook’s products.

In the US, the FTC has also taken a keen interest into Facebook’s many acquisitions, both big and small. Lawmakers believe the social giant has shown a pattern of purchasing companies with the purpose of killing them silently or absorbing them into its organization before they pose a threat to Facebook’s business.

In this case, the social giant has responded in a statement that “developers and API partners will continue to have the same access to Giphy, and Giphy’s creative community will still be able to create great content. We are prepared to show regulators that this acquisition is positive for consumers, developers, and content creators alike.”

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Cryptopunkad1
Cryptopunkad2
Cryptopunkad1
Cryptopunkad1
Cryptopunkad1
Cryptopunkad1
previous arrow
next arrow

Automated trading with HaasBot Crypto Trading Bots

Blockchain/Cryptocurrency Questions and Answers

Crypto Regulation Index
Crypto Regulation Index for 2022
October 3, 2022
What Is ZetaChain And How Does It Operate?
What Is ZetaChain And How Does It Operate?
September 27, 2022
LUNC
What is Terra Classic (LUNC)? How Does it Work?
September 26, 2022
What Is A Public Presale In Crypto?
What Is A Public Presale In Crypto?
September 22, 2022
Cryptocurrency
How Many Cryptocurrencies and NFT Collections are there in 2022?
September 21, 2022


CryptoCurrencyUSDChange 1hChange 24hChange 7d
--- --- --- ---

bitcoin
Bitcoin (BTC) $ 19,535.80
ethereum
Ethereum (ETH) $ 1,321.76
tether
Tether (USDT) $ 1.00
usd-coin
USD Coin (USDC) $ 1.00
bnb
BNB (BNB) $ 286.85
xrp
XRP (XRP) $ 0.455303
binance-usd
Binance USD (BUSD) $ 1.00
cardano
Cardano (ADA) $ 0.426739
solana
Solana (SOL) $ 32.93
dogecoin
Dogecoin (DOGE) $ 0.060097