By Kelvin Chan, Business Writer
LONDON (AP) --The United Kingdom's antitrust watchdog has blocked Facebook's acquisition of Giphy and ordered the social network to sell off the GIF-sharing platform, saying the deal hurts social media users and advertisers by stifling competition for animated images.
The Competition and Markets Authority said Tuesday that the deal would let Facebook "increase its already significant market power" by denying or limiting other platforms' access to Giphy GIFs and driving traffic to Facebook-owned sites. It has noted previously that there's only one other big provider of GIFs, Google's Tenor.
The regulator also was concerned that the deal removed potential competition from the U.K.'s 7 billion pound ($9.3 billion) display advertising market, of which Facebook controls half.
It's the first time the watchdog has sought to unwind a tech deal, marking an escalation by regulators seeking to tame digital giants.
Facebook, which has been renamed Meta, said it disagreed with the decision and is considering all its options, including an appeal.
"Both consumers and Giphy are better off with the support of our infrastructure, talent, and resources," the company said. "Together, Meta and Giphy would enhance Giphy's product for the millions of people, businesses, developers and API partners in the UK and around the world who use Giphy every day, providing more choices for everyone."
After consulting with other businesses and groups and assessing alternative solutions proposed by Facebook, the watchdog said it "concluded that its competition concerns can only be addressed by Facebook selling Giphy in its entirety to an approved buyer."
Stuart McIntosh, chair of the watchdog's independent group that carried out the investigation, said the deal "has already removed a potential challenger in the display advertising market."
"Without action, it will also allow Facebook to increase its significant market power in social media even further, through controlling competitors' access to Giphy GIFs," he said. "By requiring Facebook to sell Giphy, we are protecting millions of social media users and promoting competition and innovation in digital advertising."
New York-based Giphy's library of short looping videos, or GIFs, are a popular tool for internet users sending messages or posting on social media.
The two sides have waged a bitter battle over the deal, reportedly worth $400 million.
The Competition and Markets Authority said in a provisional decision in August that Facebook should be forced to sell Giphy. The social giant responded with a strongly worded letter, saying the provisional decision contained "fundamental errors."
Last month, the watchdog fined Facebook 50.5 million pounds ($67.4 million) for failing to provide information needed for the investigation, saying the company's failure to comply was deliberate.
The watchdog has said that prior to the deal, Giphy had been considering expanding its advertising services to other countries, including the U.K. That would have added a new player to the market and encouraged more innovation from social media sites and advertisers, but Facebook terminated Giphy's ad partnerships after announcing the deal, it said.
“Scandal” cast will reunite for online script reading for hurricane relief in western North Carolina
The cast of ABC's hit political drama "Scandal" may need to brush up on their snappy, speedy delivery known as "Scandal-pace," because they're reuniting for a good cause. Its stars including Kerry Washington, Tony Goldwyn and Bellamy Young will take part in a live virtual script reading on Nov. 17 to raise money for hurricane relief in western North Carolina.
Beginning Friday, fans can go online and donate to reserve a spot for the online reading. Proceeds will benefit United Way of North Carolina. Everyone who donates will be able to take part in a virtual pre-event with the cast and Shonda Rhimes will give an introduction.
Additional guest stars will also be announced. The online fundraising platform Prizeo is also holding a contest where one person who donates online via their site will be selected to read a role from the script with the actors. The winner should not worry about the "Scandal"-pace, assured Young over Zoom.
"Whomever the lucky reader is can read at whatever pace they want," she said.
Young, who played Mellie Young, the first lady and later Republican presidential nominee on "Scandal," was born and raised in Asheville, North Carolina. She came up with the idea for the effort with a friend and took it to her fellow "Scandal" actors, who all jumped on board. Young said this is the first script reading the cast has all done together since the show ended after seven seasons in 2018.
Which episode they will be reading has not been announced yet.
Young said it's "been devastating" to see so many parts of her hometown badly damaged by Hurricane Helene, which ravaged western North Carolina one month ago.
To research the best use for donations, Young spoke with numerous political leaders, including North... Read More