Sun Sep 12 2021
Facebook responds to the CMA over their Giphy takeover
Facebook have pushed back against those claims, disagreeing it needs to sell off its latest acquisition to allay any competition concerns.
In a very strongly worded response addressed to the CMA, Facebook has clearly laid out that they believe the regulators provisional findings contained ‘fundamental errors’.
The push from the CMA to self of their new .gif providing subsidiary was both 'grossly unreasonable and disproportionate'.
They also pointed out the CMA should think very carefully about the 'the intrusive step of ordering the sale of a company which does not carry on business in the UK'.
As we pointed out when first reporting this – the step of forcing a slae of a subsidiary in a foreign country was unusual but had been done before, especially when, although Giphy is headquartered in the US, both it and Facebook offered a worldwide service.
Finally, Facebook pointed out that they doubted the push to sell Giphy would be effective or even enforceable as the CMA had failed in its duty to provide alternative options to the sale that would be far less ‘intrusive and equally effective'.
Giphy is one of the most popular websites to allow users to both create and share GIFs with an enormous and comprehensive back catalogue of options, which have always been massively popular on various social media platforms.
The CMA however still have worries over the fact that Facebook could force other social media platforms to give away user data to them if that platform wishes to continue using Giphy’s services.
That’s why they’ve said they declined to accept the offer from Facebook for both users and rivals of to continue using Giphy under the present terms for five years
Our preliminary view was that full divestiture of GIPHY would represent a comprehensive and effective remedy. However, we will consider any behavioural remedies put forward as part of our consultation
Sun Sep 12 2021