Meta Networks Inc. is contesting a landmark ruling by the British regulatory authorities forcing the social media platform to promote the $ 35 million acquisition for GIF Giphy, a search site.
Facebook Meta Platforms Inc. appealed the decision in the Court of Appeal against the regulatory supervision’s conclusion, requesting that the requirement to sell Giphy be suspended.
The regulator ordered the sale after the closing of the deal
Giphy allows users to connect to thousands of Giphy files, which are video clips that are frequently utilized to communicate inside the digital world.
“In terms of law and fact, the decision to prohibit the deal is incorrect; the evidence does not support the CMA’s conclusions or remedy,” a Meta spokeswoman said, citing the Office of Competition and Markets.
This, according to Meta, calls into question the CMA’s research results that Giphy might be a rival to display adverts in the UK and it would erase social networking opponents from Giphy’s services, as well as charges the agency of suppressing data throughout its investigation.
The judgment, which was taken the previous month, has been the first time a large worldwide authority has spoken out against the Silicon Valley behemoth and ordered that the acquisition be terminated once it is completed.
All through the acquisition evaluation process, CMA and Meta experienced differences. The CMA penalized the business for £ 50.5 million ($ 67.7 million) on refusing to inform regulators of its plan to spin off Giphy while the evaluation phase was ongoing, while Meta criticized the CMA of not offering him alternative sales.