The UK competition watchdog’s decision to force Meta to unwind its acquisition of Giphy has drawn mixed reactions from the country’s tech community, with entrepreneurs describing it as both a “worrying precedent” and “entirely right”.
This week the Competition and Markets Authority (CMA) said the $315m deal, announced in 2020, would “significantly reduce competition in markets”.
“It has already resulted in the removal of a potential challenger in the UK display ad market, while also giving Meta the ability to further increase its substantial market power in social media,” said said Stuart McIntosh, chair of the independent inquiry group for the remittal investigation.
A Meta spokesperson said: “We are disappointed by the CMA’s decision but accept today’s ruling as the final word on the matter.”...