Is this the redemption too? The competition authority in the uk has decided on Friday night to suspend the operation of the buyback of the bank of gifs Giphy by the social network Facebook. “The Authority for competition and markets (CMA) examines whether this situation leads to a substantial lessening of competition on one or several markets in the United Kingdom,” said the authority in a press release. Facebook has bought Giphy there’s just a month for $ 400 million. The giant californian has shown that he complied with the order of the CMA.
Giphy claims over 700 million users daily. Its diverse content, which will of dogs wearing sunglasses to reactions expressive of celebrities, can be shared directly to various social networks such as Facebook, Twitter, Snapchat and TikTok. The competition authority, the australian has also launched an investigation on this purchase in the beginning of last week.
The operation pause
This announcement has an effect very concrete for the giant of social networks. Pending the conclusion of the investigation, it must cease any operation of integration of Giphy, unless a favorable opinion of the CMA. This also stops the addition of services Giphy in the group’s products, the transfer of the teams of the start-up (that Facebook wanted to see join its subsidiary Instagram), that any discussion of these common contracts. Well that Facebook and Giphy are based in the United States, the british authority may investigate any operation of more than 70 million pounds (7.5 million euros), where she has a place in the world, or if the two merging entities represent 25% of market shares when combined.
even Before the announcement of the redemption, Giphy depended on it already a lot of Facebook. Not less than half of its traffic comes from social networks of the group, be it Instagram, Whatsapp (where you can directly look for his gif in the database Giphy), Messenger, or Facebook itself.
The redemption would enable the company to Menlo Park to go much further. Some experts have expressed concerns since the announcement of the transaction. By putting the hand on the big start-up, Facebook gains access in effect in the same time to the data of its users each time they use a gif on a website.
Facebook wants to Giphy to siphon more information on us
senator Josh Hawley.
“Facebook is constantly trying out new ways to get their hands on our data, had reacted to the republican senator Josh Hawley, specialized in the fight against the monopolies, as quoted by The Verge. In the same way Google had bought DoubleClick for its very broad on the internet and its ability to collect data, Facebook wants to Giphy to siphon more information about us. Facebook should not make any redemption as it is subject to an antitrust investigation because of its past operations.”
democrat senator Amy Klobuchar, and former candidate in the democratic primary for 2020, was also worried about this announcement. “Many companies, including some in the bosom of Facebook, rely on the library of gifs to share Giphy, so I am very concerned by this announcement of redemption”, she commented.
Facebook is applied to minimize the scope of the announcement of the CMA. “Developers and partners will continue to have the same access to Giphy, and the community of creators will always continue to think of excellent content, commented a spokesman quoted on the website of CNBC. We are ready to show to the regulators that this acquisition is positive for consumers, developers and content creators.”
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