ADVERTISEMENT

UK Fines Facebook 50.5 Million Pounds Over Giphy Takeover

In May 2020, Facebook reportedly announced that it was purchasing Giphy, a search engine that provides "stickers"

Published
India
2 min read
<div class="paragraphs"><p>In May 2020, Facebook reportedly announced that it was purchasing Giphy, a search engine and a platform that provides "stickers" and other products in GIFs format, for $400 million.</p></div>
i

United Kingdom's competition regulator Competition and Markets Authority (CMA) on Wednesday, 20 October said it had fined Facebook over £50 million as the social media giant deliberately failed to provide information related to its takeover of Giphy, a animated graphics startup, reported Agence France-Presse.

In May 2020, Facebook reportedly announced that it was purchasing Giphy, a search engine and a platform that provides "stickers" and other products in GIFs format, for $400 million.

CMA said it fined the social media giant with £50.5 million ($69.5 million, 60 million euros) for intentionally denying to report all the required information about Giphy's purchase to them.

ADVERTISEMENT
We warned Facebook that its refusal to provide us with important information was a breach of the order but, even after losing its appeal in two separate courts, Facebook continued to disregard its legal obligations
Joel Bamford, senior director of mergers at the CMA, said in a statement, AFP reported

The CMA statement added that its action against Facebook should serve as a "warning" to any other firm which thinks it is superior to law. According to CMA, this was the first instance a company had breached this order.

Facebook, meanwhile reacted to CMA's action saying it "strongly disagrees" with the firm's "unfair decision" to punish the social networking giant "for a best effort compliance approach, which the CMA itself ultimately approved."

It added that they would review CMA's decision and act after considering options they have.

The fine on Facebook comes even as it faces severe backlash about it being aware that its sites could be harmful to the mental health of youngsters.

(With inputs from Agence France-Presse)

(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)

Speaking truth to power requires allies like you.
Become a Quint Insider
500
1800
5000

or more

PREMIUM

3 months
12 months
12 months
Check Insider Benefits
ADVERTISEMENT
Stay Updated

Subscribe To Our Daily Newsletter And Get News Delivered Straight To Your Inbox.

Join over 120,000 subscribers!
ADVERTISEMENT