Facebook’s Owner Meta to Pay Another £1.5 Million Fine to Britain’s CMA
Last Updated: January 28, 2023
The CMA stated on Friday, 4th of February, that Meta is to pay another £1.5 million for irregularities concerning the acquisition of Giphy. Though disagreeing with the decision, the holding company agreed to pay the fine.
It was in August of 2021 that the Competition and Markets Authority (CMA) deemed May’s purchase of the animated images platform a potential disturbance to the digital advertising market.
CMA even intended to prevent the acquisition for the purpose of maintaining a fair digital advertising market. The grimmest prognosis was that Meta (known as Facebook up until November last year) buying Giphy would be a step closer to a monopoly.
Meta’s PR team introduced the purchase as a way of letting Instagram users find the right way to express themselves. The Competition and Markets Authority, on the other hand, noted that the purchase (estimated at $400 million) might have to be reversed.
After weighing Meta’s intended plans to prevent unfair conditions against the detrimental effect on the market, and determining that Meta’s handling of Giphy doesn’t comply with the determined rules, CMA ordered Meta to sell the platform in October.
This mishandling is most easily observed through Meta’s failure to notify Britain’s regulatory body of key staff members leaving Giphy soon after the acquisition.
Despite repeatedly warning the tech-giant, CMA received significantly limited (…) updates, denoting them as particularly flagrant, issuing a £50.5 million fine and ordering Meta to sell the GIF hosting company.
Meta notified the public that it will pay the latest fine and that it couldn’t control the leave of Giphy employees. It also described the clash of CMA’s decisions with the protection of its employees under U.S. law as problematic.