As the current downsides aren’t enough, Meta was freshly fined £1.5 million by the UK competition regulator for failing to report a key detail in the Giphy deal.
Meta has listed a few key personnel in the Giphy deal is made in 2020 and was told by the UK regulator to disclose any changes in their positions. But, Meta failed to inform the regulator about the resignation of three key people in the Giphy deal, which now attracted fine.
Meta Fined in Giphy Deal
As you have observed, Meta has been the most affected tech company since last month. The company is undergoing staff cutting, made predictions of losing $10 billion through Apple’s new policies, sold an ambitious cryptocurrency project Diem, and lost over 25% value due to losing investor confidence.
And now, piling up on these problems is a fresh penalty from the UK Competition and Markets Authority (CMA), for failing to disclose a key detail from the Giphy deal it made in past. Meta (than Facebook) has acquired Giphy for $400 million in 2020, thereby merging its vast suite of GIFs into its ecosystem of apps.
While this seemed good, the UK’s competition regulator has immediately announced a review of this deal and asked Facebook to mention the key people involved in this deal. And now, it’s found that Meta has failed to notify the UK regulator about the three of the mentioned key people who have resigned and been replaced.
This failed reporting now attracted Meta a fine of £1.5 million and becomes the second such penalty in Giphy’s deal. The first one was levied for $50 million for significantly limiting the scope of compliance reports.
Further, the CMA is encouraging Facebook to sell off Giphy, as the deal disturbs the local advertising market and the competition among social media platforms. But Facebook is fighting against this recommendation, as it argues that CMA has no right in forcing such deals.
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