The British competition regulator on Tuesday ordered Meta, owner of Facebook, to sell animated image platform Giphy, after a court last summer upheld its view that the acquisition curtailed innovation in the ad market.
Meta said she will accept the order from the Competition and Markets Authority (CMA) to undo the 2020 deal.
“We are disappointed by the CMA’s decision, but We accept today’s decision as the final word on the matter.” a Meta spokesman said in a statement. “We will work closely with the CMA on the divestment of Giphy.”
The British regulator blocked the deal, valued at around $400 million, in November 2021 over the concern that Meta might deny or limit access from competitors to Giphy’s GIFs.
He was also concerned about losing a potential competitor in display advertising, although Giphy had no presence in the sector in the UK.
The sentence marked the first time London has blocked a takeover by an American tech giant, and marked a new determination to scrutinize digital deals.