Court overturns CMA findings and orders new investigation
After the court found issues with the agency’s method of research, the acquisition of Meta Platforms Inc. search engine GIF Giphy will be sent back to the UK competition authority for further review.
The Competition and Markets Authority’s judgment requiring Meta to sell Giphy was overturned by the judge. The matter will now be sent to the CMA for a review by the review body to reevaluate whether the agreement will lessen competition in the market for social media services and display advertising.
CMA intends to complete the review within three months
Since being told to cancel its $315 million acquisition of GIF Producer in 2020, Meta has been embroiled in a legal battle with the regulator.
It was the first time a worldwide regulator tried to force a significant tech company to end a signed contract, showing how aggressive the regulator was with the market might of the Silicon Valley behemoths.
However, the Competition Court of Appeal judges decided that the watchdog’s finding was undercut by the fact that it misrepresented the evidence and did not adequately consult on some areas of its investigation.