Britain tells Facebook owner to sell Giphy

Britain’s competition regulator has told Facebook owner Meta Platforms to sell animated images platform Giphy after finding that the acquisition could harm social media users and U.K. advertisers, dealing a blow to the U.s.-based tech giant.

The Competition and Markets Authority (CMA) said on Tuesday the decision was in line with provisional findings that Facebook’s acquisition of Giphy in May last year would reduce competition between social media platforms and in the display advertising market.

Facebook, recently rebranded as Meta Platforms, said it may appeal the CMA’S decision.

The CMA in October fined the company about $70 million for breaching an order that was imposed during its investigation into the deal, having hinted in August that it might need Facebook to sell Giphy.