Giphy is making good use of her formidable reputation. Meta acquired the company — known for its library of GIFs and video clips — for $400 million in May 2020. But last November, the UK’s Competition and Markets Authority. Ordered Meta—Owner of FacebookInstagram and WhatsApp — to sell Giphy.
Appeal against antitrust decision in application submitted last month, Giphy argues that GIF use has seen an “overall decline” and “waning” interest between users and content partners, with fewer uploads on its platform. In recent years. The company also calls its platform “outdated”, arguing that younger users consider it “blunt” and more suitable for newbies.
It’s hard to argue with Meta overpaying the company. At the time of purchase, Meta said GIFs would help users have more interesting conversations on its platform.
Supervisory Authority debated last Novemberhowever, it has “protected millions of social media users and fostered competition and innovation in digital advertising”. It said the acquisition removed Giphy as a “potential challenger” in the display advertising market, about half of which Facebook/Meta already controls.
Furthermore, it says that with the deal Meta has “denied or restricted other platforms’ access to Giphy GIFs, driving more traffic to [Meta-owned] websites — Facebook, WhatsApp and Instagram — account for 73% of the time people spend on social media in the UK. ”
The watchdog acknowledged that the GIF . format invented in the 1980s, a fact that seems to further support Giphy’s argument about being obsolete. But it also notes:
“The advent of social media has provided an opportunity to reimagine GIFs as part of modern internet culture. The main GIF libraries in use today were launched less than ten years ago, and the popularity of GIFs has grown a lot since then. Every day, millions of UK users post content with GIFs”.
As for why a UK regulator is placing an order around US-based companies, the agency explained, the key question is whether the merger “could have an impact on competition”. paintings in England”
For Meta, it has been a rough year, with stock prices falling and profits shrinking. This month, The Wall Street Journal reported that the company regulates its Responsible Innovation teamhas a mandate to address ethical concerns with its products.
Just last year, Margaret Stewart, the group’s founding vice president, wrote that she was “optimistic” The team will help Meta “proactively highlight and address the potential harm to society in all that we build”.
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