While the UK competition regulator made its decision public, Meta, the company that owns Facebook, was found to be in violation of the agreement involving the gif-making website Giphy.
This marks the first occasion the regulator has stopped a big corporation from completing a deal of this nature. According to CNBC, Meta conceded loss when the regulator announced its decision. It was verified that the purchase had lessened advertising market innovation.
The representative for Meta lamented the decision. It stated that Meta is unhappy with the regulator’s choice. Nevertheless, the business has acknowledged that the decision made on October 18 is the last word on the subject.
According to the article, a Facebook representative said that the company will abide by CMA regulations while divesting the company. The GIPHY crew is acknowledged as having Meta’s gratitude throughout this historic period. The social media juggernaut, though, would seek revenue-generating prospects via acquisition and other means to provide more of its customers’ options, it was noted.
In the WEB3 environment, Meta is constantly stretching its boundaries. It was previously stated that Facebook had enabled NFT distribution in some regions of the world. The users will be able to share their possessions and link their digital wallets as a result.
This position has been taken by UK regulators to demonstrate their desire to compete well with other international regulators. It was noted that this action has made Giphy a prospective rival in the UK advertising sector.
Among the smallest deals ever started was the $400 million buying of GIPHY by Meta. The titan of social media has made multiple deals for more pay than this. Prior to that, it paid $1 billion for Instagram and $19 billion for the messaging service WhatsApp.
Yet, Facebook is currently dealing with criticism from a number of nations. Russia has designated the dominant social media platform as a terrorist and extremist group. For a very long period, the Russian government has been calling Facebook an extremist group.