The news: Meta was ordered to sell GIF repository Giphy by the UK’s Competition and Markets Authority (CMA) on Tuesday, per Insider. Meta said it is mulling an appeal.
Dig deeper: The May 2020 acquisition of Giphy—to the tune of $400 million—drew immediate backlash from watchdogs concerned about Meta’s growing control over the digital ad space.
What this means for Meta: It’s a blow to the company’s attempt to finally extract revenues from WhatsApp, which has been the notoriously difficult to monetize.
What this means for marketers: The forced sale could bring back one of the key appeals of Giphy: its cross-platform reach.
What’s next: The CMA’s ruling sets a precedent that’s bad news for Big Tech, but good news for marketers tired of Meta’s market dominance.
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