Facebook owner Meta Platforms has been ordered by the competition regulators to sell animated images platform Giphy after finding that the deal could harm social media users and UK advertisers.
The Competition and Markers Authority CMA said that the decision was in line with the provisional findings that Facebook's acquisition of Giphy would reduce competition between social media platforms and the display advertising market.
The tie-up between Facebook and Giphy has already removed a challenger in the display advertising market, by requiring Facebook to sell Giphy, we are protecting millions of social media users and promoting competition and innovation in digital advertising, said Stuart McIntosh, chair of the independent investigation for the CMA.
Facebook has rebranded Meta Platforms as the parent company of the eponymous social network, and said it disagrees with the decision.
A spokesman for Meta said the decision is being looked at and we are looking at all options, including appeal.
In October, the CMA fined the company $70 million for breaching an order that was imposed during its investigation into the deal, and suggested in August that it may need Facebook to sell Giphy.