Thread on Facebook/Giphy being blocked from the provisional findings.

Today's final report still includes the funny idea that Giphy's ad business is particularly promising because GIFs loop, meaning that "the ad might be seen by users a number of times" ? https://t.co/I9mXPFEezj

— Sam Bowman (@s8mb) November 30, 2021

The first could be remedied by just requiring FB to keep Giphy accessible by competitors.

That would also be a mistake IMO: losing Giphy isn't going to kill Twitter, Snapchat, etc, and if FB closes their access to Giphy, there's little stopping a replacement from popping up.

— Sam Bowman (@s8mb) November 30, 2021

Facebook will also be required to reinstate the innovative advertising services that Giphy offered before the merger.
Read more: https://t.co/WPn3QbI1OQ#DigitalAdvertising

— Competition & Markets Authority (@CMAgovUK) November 30, 2021

Interesting decision by the CMA here, ahead of the big Nvidia ruling. It means the UK regulator has decided a US company must sell the US company it acquired. Meta says it’s “reviewing the decision and considering all options, including appeal.” https://t.co/Rf4Do3Do5S

— Tom Warren (@tomwarren) November 30, 2021

When we first broke news of this deal, we noted that regulators were gonna take a good, hard look at it.

FB sources told me I was nuts.https://t.co/5zg1oGlO6G https://t.co/GlAgaVZznm

— Dan Primack (@danprimack) November 30, 2021

Not at the tippy-top of my personal antitrust to-do list, but okay https://t.co/7M4QKuq2aw

— Joshua Benton (@jbenton) November 30, 2021

A big, bold move from the @CMAgovUK today. On @CommonsBEIS we’re looking at post Brexit competition policy and the role of the Digital Markets Unit. Will be interesting to see how this runs ? https://t.co/x3xUPYlEmB

— Darren Jones MP (@darrenpjones) November 30, 2021

The UK competition regulator has demanded that Facebook sells Giphy as the acquisition has been deemed anti-competitive.

This is a bold precedent not yet applied to a tech giant, let alone a US company's acquisition of another US company. Will they listen? https://t.co/OSc26VNVRp

— Ryan Brown ?❄️ (@Toadsanime) November 30, 2021

Sky News understands that Meta will appeal the decision, although the formal process not yet begun.

It has four weeks to do so and the appeal would first go to a CMA tribunal. After that Meta could potentially challenge that ruling in the UK courts, but only on points of law. https://t.co/CXz0At4lGJ

— Alexander Martin (@AlexMartin) November 30, 2021

This is what I don't understand. Giphy might dominate access to GIFs right now, but a decent rival could easily spin up if the need was there. GIFs aren't proprietary tech. https://t.co/yeGR54oxqX

— Martin SFP Bryant (@MartinSFP) November 30, 2021

The second is, as I say in the previous thread, an argument that "proves too much". The CMA wants to have it both ways: Facebook is both a monopolist that doesn't compete with, eg, Google display ads, but ALSO thinks that Giphy would be a serious competitor of FB's if given time.

— Sam Bowman (@s8mb) November 30, 2021

Maybe this is a dumb question but I don’t fully understand how a British regulator can compel an American company to do this. If (for example) the US and EU said it was fine, what recourse would Britain have? https://t.co/AzHyvHvLCQ

— James O'Malley (@Psythor) November 30, 2021

"The supply of GIFs" https://t.co/e4Fa46S0yJ

— James Titcomb (@jamestitcomb) November 30, 2021

Suspect this might prove to be overreach on the CMA's part. Be interesting to watch. https://t.co/tHnwpUfJiJ

— James Ball (@jamesrbuk) November 30, 2021

We’ve directed #Facebook to sell Giphy after finding the takeover could reduce competition between social media platforms and increase Facebook’s already significant market power. pic.twitter.com/yRaPxMR43z

— Competition & Markets Authority (@CMAgovUK) November 30, 2021

I feel sorry for the British #unicorns which were founded on the assumption of being "bought out" as an exit strategy, rather than expecting to have to deliver customer value over the long-term.

Now they have to face the giants competing against *them*.https://t.co/i4tiaTXcA1

— Alec Muffett (@AlecMuffett) November 30, 2021

FT story with @KateBeioley_FT UK regulator expected to block Meta’s Giphy deal \\ Move would be the first time the competition watchdog has reversed a Big Tech acquisition https://t.co/LngghzoVjl

— Javier Espinoza (@JavierespFT) November 29, 2021

Basically, there are two theories of harm. One is that FB buying Giphy would deprive sites like Twitter of access to its GIF library; the other is that someday Giphy might be a competitor of FB's in digital ads (thanks to those innovating looping ads). Both seem pretty weak, IMO.

— Sam Bowman (@s8mb) November 30, 2021

admirable though pic.twitter.com/mLReZqz9Mc

— James Titcomb (@jamestitcomb) November 30, 2021

Fiddling while Rome burns.

*this* is what you hit Meta with? Really? https://t.co/QrRmou2R21

— basche42.eth (@basche42) November 30, 2021

"By requiring Facebook to sell Giphy, we are protecting millions of social media users and promoting competition and innovation in digital advertising," says the CMA.

Our breaking story here.https://t.co/0vfwMlEhlt

— Alexander Martin (@AlexMartin) November 30, 2021

Facebook's owner Meta has been issued a legally binding order from the Competition and Markets Authority ordering it to sell the GIF library Giphy after an investigation found the takeover "could harm social media users and UK advertisers".https://t.co/qJmnbvbgag

— Commercial Awareness (@ComAware_4S) November 30, 2021

BREAKING: UK competition watchdog orders Facebook to sell gif website Giphy. @marksweney @guardian https://t.co/nffyz8rsvC

— The Real Facebook Oversight Board (@FBoversight) November 30, 2021

UK competition watchdog orders Meta to sell gif website Giphy https://t.co/2SoZZAstag

— LobbyControl Tech (@lobbyctrl_tech) November 30, 2021

Wowser. Especially as neither is a UK-based company and this is based on speculation about their future actions. https://t.co/EEBCLmWoa9

— Martin SFP Bryant (@MartinSFP) November 29, 2021

I feel bad for Giphy & don’t necessarily think this should have been blocked.

The missing piece of the story here is Google’s self-preferencing in GIF search caused an instant drop in Giphy traffic and value. Failure to curb this behavior led to it being sold for a song to FB. https://t.co/G7kmEDzIYX

— Luther Lowe (@lutherlowe) November 29, 2021

I would guess that Facebook rushing to complete this merger before it could be “blocked” is why it will now have to go through a lot more work to undo it https://t.co/ZBfqzlk1H1

— John Bergmayer (@bergmayer) November 29, 2021

Just because leveling the big tech playing field begins with animated gifs. https://t.co/pFekA5FYPV

— Larry Dignan (@ldignan) November 29, 2021

UK set to block Facebook parent Meta's $315M acquisition of Giphy https://t.co/KD3G4H0UVP pic.twitter.com/mq7eIKIkjp

— New York Post (@nypost) November 29, 2021

UK competition regulators are expected to block Facebook / Meta’s acquisition of online GIF platform Giphy in the coming days, the Financial Times reported on Monday.https://t.co/AZEiXjOriZ

— Whole Mars Catalog (@WholeMarsBlog) November 29, 2021

UK competition regulator expected to block Facebook^H^H^H^H^H^H^H^H Meta acquisition of Giphyhttps://t.co/80WYoHghfZ pic.twitter.com/IFxgiMbZcg

— Graham Cluley (@gcluley) November 29, 2021