Meta is selling Giphy after UK regulators ruled that its ownership of the popular GIF platform restricts consumer choice and hurts competition both in the ad and social media markets.
What happened: It's the second time UK regulators have ordered Meta to sell Giphy after the company purchased it for ~US$400 million in 2020 (but this time, Meta backed down).
- Regulators argued that Meta could abuse its market power by denying access to Giphy or changing its terms of access. For instance, Meta could have required competitors (including archrival TikTok) to provide more user data to access GIFs.
If you’re wondering why there’s so much stink over these little moving images, it's because over 10 billion GIFs are exchanged daily between Giphy’s 700 million daily users.
Yes, but: Meta might have trouble shopping the platform because, in case you didn’t know, GIFs are out as young internet users (and loyal Peak readers, we’d add) deem them ‘cringe.’
Why it matters: This is the first time the UK has put the kibosh on a deal by a Silicon Valley giant. Plus, Europe’s continued efforts to reign in Big Tech are finally being felt across the pond.
Zoom out: Regulators around the globe have made it clear that the 2010s heyday of tech buyouts, where deals like this went through without anyone batting an eye, is over.