Meta may keep Giphy for another day as UK court reconsiders case
What do you want to know:
- The Competition Appeal Tribunal (CAT) found inconsistencies in the investigation by the Competition and Markets Authority (CMA).
- The CMA did not notify Meta of Snapchat’s acquisition of Gfycat.
- CAT hopes to complete its review by October.
Bloomberg reported earlier this week that the UK court compelling Meta to sell Giphy is set to re-examine the case following some inconsistencies with the investigation.
In 2020, Meta finalized its deal to buy Giphy, a gif search engine. However, Meta has been back and forth with UK courts since then; at one point Giphy was in the hands of the social media giant, only for the Competition and Markets Authority (CMA) to offer Meta to sell Giphy due to competition concerns. At the time of this decision, Meta was offered two options: appeal or sell Giphy.
Meta appealed and throughout the process it was discovered that some things had not been properly considered.
The Competition Appeals Tribunal (CAT) has overwhelmingly ruled in favor of the CMA. However, it was found by the CAT that the CMA failed to properly inform the Meta of Snapchat’s acquisition of Gfycat, undermining its argument. The CMA must now reconsider its decision but also allow Meta to comment on the full, unredacted version of its report.
As Bloomberg pointed out, this ordeal marked the first time a regulator has made meaningful progress in forcing a major tech company out of a completed acquisition.
When Android Central reached out to Meta for comment, a spokesperson echoed its previous statement from June, when CAT announced the decision.
“Today’s decision found that the CMA’s approach to its investigation was ‘difficult to defend’ and ‘undermines the entirety of the decision.’ “We look forward to understanding how these serious process flaws will be resolved. We strongly believe that our investment would improve GIPHY’s product for the millions of people, businesses, and partners who use it,” they said.
The CMA is currently reviewing this case and expects to complete this review by october.