For its $400 million acquisition of Giphy Inc, an American online database and search engine for short looping videos without music, which resemble animated GIF files, Facebook Inc. is being investigated in the UK.
The Competition and Markets Authority (CMA) in the United Kingdom has launched a formal investigation to determine whether this arrangement has influenced competition in the supply of video clips and animated images, as per reports.
While Facebook acquired Giphy on 15 May 2020, in June Facebook had to suspend its integration process with Giphy because the CMA decided to investigate whether the deal gave Facebook an unfair advantage over its competitors.
Facebook says, however, that this merger is pro-competitive and in the interests of anyone who uses Giphy and its services in the UK. The social media giant hopes to cooperate entirely with the inquiry by the CMA.