Facebook May Be Forced To Sell Giphy to Escape a Fine

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Facebook may be required by law to resell the Giphy animated GIF creation, storage and sharing service. Mark Zuckerberg’s company acquired the platform in May 2020, but the purchase is now facing questions about its legality.

According to the Reuters news agency, the challenge came from the United Kingdom, more specifically after an analysis by the Market and Competition Authority (CMA, in its original acronym in English). The institution considers that the purchase brings risks to market competitors due to future possibilities.

“The uptake of Giphy could cause Facebook to remove GIFs from other competing platforms or require more user data to access them. It also removes a potential competitor to Facebook,” says investigation officer Suart McIntosh. Sought, the social network did not comment on the case.

And now?

A new round of investigations with the help of other agencies will be carried out until 2 September. As a result, Facebook may have to face court for the acquisition, which at the time cost $400 million.

In addition to Giphy, disputes about Instagram and WhatsApp purchases are also carried out by antitrust bodies in Europe and the United States, but so far no fines or official requests for fragmentation have been adopted.

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