The UK Competition and Markets Authority is likely to block Meta's upcoming $315 million acquisition of online GIF platform Giphy, according to media reports.
Tech giant Meta which was previously known as Facebook had moved to buy Gift in May 2020, however, the UK competition regulator has raised concerns in regard to the deal and provisionally ruled in August that Meta should be forced to sell Giphy, as per financial times report.
The regulators will be making their final call regarding this matter by December 1, it added.
Reacting sharply to CMA's claims, Meta's spokesperson denied the authority's findings and said that the company won't believe anything that isn't supported by evidence.
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"We disagree with the CMA's preliminary findings, which we do not believe to be supported by the evidence," a Meta spokesperson said in a statement following the provisional ruling.
The spokesperson made these remarks while responding to a request for comment with a statement it gave in August.
"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,"
The Competition and Markets Authority argues the acquisition could harm competition in the social media and digital advertising markets.
If the CMA moves to reverse Meta's Giphy deal, it would be the first time the regulators overturned an acquisition in Big Tech, according to the Financial Times.
In October, the watchdog fined Meta around $69.6 million for failing to provide full updates showing its compliance with an order to continue to compete with the GIF company and avoid further integration while the acquisition was under investigation.