FACEBOOK’S £290M GIPHY BUYOUT UNDER THREAT

FACEBOOK’S takeover of Giphy could be undone as the UK competition regulator looks to flex its muscles and crackdown on Big Tech.

In an unprecedented move, the Competition and Markets Authority (CMA) looks set to step in to block the £290m deal for the Gif platform.

It would be the first time the UK regulator has reversed a completed big tech merger.

Facebook, which recently changed its name to Meta, bought Giphy in May 2020 and planned to integrate it into its photo-sharing app Instagram.

But the CMA has raised concerns about the impact it would have on the digital advertising market.

In August, it provisionally ruled that Facebook – founded by Mark Zuckerberg, (pictured above with the firm’s chief operating officer Sheryl Sandberg) – should sell Giphy. The regulator has until December 1 to make a final decision.

Following the provisional ruling, a Facebook spokesman said: ‘As we have demonstrated, this merger is in the best interest of people and businesses in the UK – and around the world – who use Giphy and our services.’

In October, the watchdog fined Facebook £50.5m for failing to provide full updates showing its compliance with an order to continue to compete with the Gif company and avoid further integration while the acquisition was under investigation.