Facebook's Giphy Deal Draws UK Competition Watchdog's Attention

  • Posted By: Studio
  • Tech
  • Updated: 4 May, 2024 15:01
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Facebook is now pausing the planned Giphy integration with Instagram, a source familiar with the matter told Reuters.

Facebook's acquisition of popular GIF website Giphy is being scrutinised by the United Kingdom's competition watchdog for possibly reducing competition.

The parent of messaging app WhatsApp bought Giphy, a popular website for making and sharing animated images, or GIFs, in May to integrate it with its rapidly growing photo-sharing app, Instagram.

Facebook is now pausing the integration, a source familiar with the matter told Reuters.

"We are prepared to show regulators that this acquisition is positive for consumers, developers, and content creators alike," the company said in a statement on Friday.

According to Facebook, 50 percent of Giphy's traffic comes from Facebook's apps, with half of that coming from Instagram.

While a formal probe is yet to begin, the Competition and Markets Authority (CMA) earlier this week served Facebook with an initial enforcement order and on Friday began the first stage of an investigation, inviting comments on the transaction from any interested party.

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