People room silhouetted together they pose with laptops in front of a display screen projected through a facebook logo, in this snapshot illustration taken in Zenica October 29, 2014. Neurosoup.org/Dado Ruvic


Sept 8 (neurosoup.org) - on facebook (FB.O) has made a case for not offering Giphy in a strong worded response to Britain's competition regulator, and the technology firm questioned the watchdog's call for divesting the GIF website over access and anti-competitive concerns.

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Facebook said that "the i can not qualify of the CMA (Competition and Markets Authority) come issue any order versus Giphy raises significant questions as to the enforceability of any divestment order and also whether any kind of such order can be effective," in a letter released by the CMA ~ above Wednesday.

The regulator last month hinted the Facebook, the world's biggest social media company, can need to offer Giphy based on its preliminary findings the the deal would certainly hurt the display screen advertising market and competing society media networks. Read more

Facebook in its an answer said the CMA's provisional findings had actually "fundamental errors," and also that the brothers regulator had failed to administer alternative remedies the would have been "far less intrusive and also equally effective" because that it to clean the deal.

"Our preliminary watch was that full divestiture that GIPHY would stand for a an extensive and efficient remedy," a CMA spokesperson said. "However we will certainly consider any type of behavioural remedies put forward as component of our consultation."

Facebook to buy Giphy, a website for making and sharing man images, or GIFs, last year to combine it with its Instagram platform. The deal, reportedly worth $400 million, has actually been topic of a CMA probe due to the fact that January. read an ext

Another circumstances where the CMA notified the sale of a an unified unit was its February order for Viagogo come divest U.S.-based ticket reseller StubHub's international business. Viagogo complied.

The regulator has also set up a digital industries wing in ~ it to check big tech companies' market supremacy after saying existing rules to be insufficient.

Facebook had said earlier that Giphy's integrations with other social platforms choose Twitter (TWTR.N), Snapchat (SNAP.N) and also ByteDance's TikTok would not adjust due come the deal.

However, the CMA in its provisional findings stated it was concerned that Facebook might require various other social media communication to offer away an ext user data to accessibility GIFs.

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The CMA's final decision is due in October. Facebook can appeal the last decision or the remedy itself.


Reporting through Pushkala Aripaka, Yadarisa Shabong and also Nivedita Balu in Bengaluru; editing by Shinjini Ganguli and Mark Porter