Britain’s competition watchdog has given Facebook and Geoffe five working days to submit proposals to address its concerns about the merger that may affect digital advertising and the supply of moving images, according to Reuters.
The UK Competition and Markets Authority launched a preliminary investigation in January at a time when the US-based social media company was under global regulatory scrutiny over antitrust concerns.
It found that Giphy, which was once a competitor to Facebook in digital advertising through paid sponsorship outside the UK, has plans to expand sponsorship deals to other countries, including the UK.
The regulator said: “If Giphy and Facebook continue to be merged, Giphy may have less incentive to expand its digital advertising.
The world’s largest social media company bought Giphy, a website for creating and sharing gifs, or GIFs, in May of last year to integrate them with the fast-growing photo-sharing app Instagram, however, Reuters quoted a source in June that Facebook had paused the merging. .
The company said Giphy’s integration with other social platforms like Twitter Snapchat and ByteDance’s TikTok will not change.
“This merger is beneficial for competition and for everyone in the UK who uses Giphy and our services – from developers to service providers to content creators,” a Facebook spokesperson said, adding that it would cooperate with the investigation.