UK competition authority to investigate Facebook’s acquisition of Giphy

The UK Competition and Markets Authority (CMA) is referring to Facebook’s acquisition of GIF database Giphy for an in-depth investigation. Giphy has one of the top libraries for GIF’s, animated images involving memes or pop culture references that are shared online. The CMA found evidence that Giphy had the intention to expand its digital advertising partnerships to the UK before the deal with Facebook was concluded. The watchdog believes that Giphy’s combination with Facebook means that Giphy has less incentive to expand its digital business in the UK, leading to loss of competition. The deal between Giphy and Facebook is also being investigated by the Australian competition watchdog.