Facebook’s purchase of Giphy will affect competition from animated images, UK regulators said Thursday, which means the social network may eventually be forced to end the deal if preliminary results are confirmed.
The acquisition will affect the competition between social media platforms because the other big GIF provider is Google’s Tenor. said the Competition and Markets Authority (CMA).
The Giphy Short Loop Video or GIF Library is a popular tool for netizens to post or post to social media.
The deal will also reduce competition from digital advertising by removing a potential competitor from the market, said the agency, which began analyzing the acquisition last year, shortly after Facebook announced its plan to buy Giphy for an alleged $ 400 million.
Facebook disagreed with the preliminary findings because it didn’t believe there was any evidence.
“As we have shown, this merger will benefit individuals and companies in the UK and around the world who use Giphy and our services,” Facebook said. “We will continue to work with the CMA to dispel the misconception that the agreement harms competition.”