Facebook could have to sell Giphy

Facebook could be forced to sell Giphy.

The social networking platform acquired the search engine for Gifs for a reported $400 million last year - but the Competition and Markets Authority has observed that Facebook's ownership of Giphy "could lead it to deny other platforms access to its Gifs".

Now, the Competition and Markets Authority is engaged in a consultation that could ultimately lead to Facebook being forced to sell the firm.

The organisation has already warned that Facebook could theoretically stop other platforms from using the service.

What's more, it's been suggested that Facebook could require Giphy customers - like TikTok - to provide data for the Gifs.

In response to the regulator, Facebook told the BBC: "We disagree with the CMA's preliminary findings, which we do not believe to be supported by the evidence.

"As we have demonstrated, this merger is in the best interest of people and businesses in the UK - and around the world - who use Giphy and our services.

"We will continue to work with the CMA to address the misconception that the deal harms competition."

Last month, Facebook pushed back against Joe Biden's criticism of social media companies amid the coronavirus pandemic.

The US President slammed various companies for allowing misinformation to appear on their platforms, but Guy Rosen - Facebook's vice-president of integrity - insisted the criticism wasn't entirely fair.

In a blog post, he observed that "facts tell a very different story to the one promoted by the administration in recent days".

He added: "At a time when COVID-19 cases are rising in America, the Biden administration has chosen to blame a handful of American social media companies.

"While social media plays an important role in society, it is clear that we need a whole of society approach to end this pandemic. And facts - not allegations - should help inform that effort."

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