UK regulators are cracking down on Meta (formerly known as Facebook). The UK’s competition watchdog ordered Meta to sell Giphy, which it bought last year for $315M. Giphy is a GIF-sharing platform that people all over the world use.
The UK regulators said the merger would have limited competition in the ad market and given Meta control over some of the biggest platforms in the country, including Twitter, TikTok, and Snap when it comes to access GIFs.
Since Meta is facing lawsuits in several countries, it might choose not to appeal. Regulators will be watching every move in regards to this, and it could result in other crackdowns on all the big players. It is no secret that President Biden is always ready to take a swing and challenge monopolistic practices.
How do you think this will play out? Will Meta fold under pressure, or will it fight to the death. They actually have four options; Meta can appeal, sell Giphy, leave the UK, or get fined. The UK already fined Meta $70M for failing to cooperate with the investigation.
Will all of this affect Meta's stock price? Only time will tell, but recently the stock has not performed well.
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