World

Meta was told by UK regulators to sell a GIF sharing site

Facebook CEO Mark Zuckerberg announced a rebranding as Facebook’s meta at a live-streamed virtual augmented reality conference. This screen grab is an excerpt from a video released on October 28, 2021.

Facebook | Via Reuters

London- MetaFacebook’s parent, the UK’s competitive watchdog, has told us that we need to sell the GIF sharing platform Giphy.

The Competitive Markets Department said Tuesday that the deal could harm social media users and UK advertisers. Meta said he disagreed with the decision and is considering an appeal.

Regulators have concluded that Meta’s acquisition of Giphy will reduce competition between social media platforms. He added that the deal has already eliminated Giphy as a potential challenger in the display advertising market.

One panel has determined that Facebook can gain significant market power in relation to other social media platforms by denying or restricting access to Giphy GIFs on other platforms.

The panel concludes that this will increase traffic to Facebook-owned sites (Facebook, WhatsApp, Instagram) and already account for 73% of the user time spent on social media in the UK.

Meta may also change Giphy’s access to GIFs, CMA said. For example, you might need something like TikTok. twitter And Snapchat provide more user data to access GiphyGIF.

Impact on advertising

Before trading in May last year, Giphy launched its own advertising service and was considering expanding to countries other than the United States, including the United Kingdom. Giphy’s advertising service allowed companies like Dunkin’to promote their brands through visual images and GIFs.

CMA has discovered that Giphy’s advertising services can compete with Facebook’s own display advertising services while at the same time driving innovation from other social media sites and advertisers.

Facebook stopped Giphy’s advertising service at the time of the merger. The CMA said this was the cause of concern. In particular, Facebook dominates nearly half of the UK’s £ 7 billion ($ 9.4 billion) display advertising market.

Stuart Mackintosh, chair of an independent research group conducting the survey, said in a statement Tuesday that the deal has already eliminated potential challengers in the display advertising market.

“By asking Facebook to sell Giphy, we protect millions of social media users and drive digital advertising competition and innovation.” It’s unclear how long Meta will have to sell Giphy.

“We disagree with this decision,” a Meta spokesman said Tuesday. “We are considering the decision and considering all options, including appeals.”

August, CMA Said The purchase of Giphy by Meta (still called Facebook at the time) has tentatively discovered that it negatively impacts competition between social media platforms and eliminates potential challengers in the display advertising market. ..

At that time, the CMA said the company might need to close the transaction. Reportably worth $ 400 million, And if conflict concerns are finally confirmed, sell Giphy.

When the deal was announced, Facebook said it wanted to further integrate Giphy into the Instagram app “to allow people to find the right way to express themselves.”

CMA Fine Facebook £ 50.5m in October because it did not provide regular updates to show that it was in compliance with the order. Despite repeated warnings, Facebook said it “has severely limited the scope of these updates.”

Meta was told by UK regulators to sell a GIF sharing site

Source link Meta was told by UK regulators to sell a GIF sharing site

Back to top button