June 25, 2022

What you need to know

  • Meta purchased Giphy in 2020 for $400 million.
  • The U.K.’s Competition and Markets Authority (CMA) found that the deal would harm competition and ordered Meta to sell the GIF platform.
  • Meta appealed the decision, but it was found that the CMA acted fairly in its decision on all counte but one.

It looks like Meta’s acquisition of Giphy will be a fairly short-lived one after the company largely failed to appeal a decision by the Competition and Markets Authority (CMA) to sell the platform. The decision came on Tuesday, which found that the CMA was mostly justified in its ruling.

In 2020, Meta announced that it would acquire Giphy for $400 million, integrating the platform into its various apps and services. However, the CMA has maintained that it would harm competition if Meta controlled one of the few major GIF platforms. In 2021, the CMA ordered Meta to divest Giphy, a decision that Meta tried and seemingly failed to appeal.