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Facebook’s Giphy deal puts global concerns over data use and ‘killer acquisitions’ under the spotlight
19 June 2020 00:00
Short, humorous looping videos that you can attach to an online message or a tweet don’t sound like something likely to prompt regulators to take on the world’s largest social-media platform. Yet Facebook’s May acquisition of GIF database Giphy is indeed shaping up as an antitrust test case centering on so-called killer acquisitions and Big Tech’s use and collection of data. What’s more, the probe into the Giphy deal launched by the UK’s Competition and Markets Authority may even set the tone of the regulator’s post-Brexit approach to online deals.
Facebook’s track record of strategic acquisitions lie at the heart of the Australian regulator’s decision to probe the platform’s decision to acquire Giphy.
Facebook is likely to argue that its completed acquisition of Giphy is a straightforward case of vertical integration and doesn’t give rise to competition issues.
Facebook's purchase of the animated image company Giphy is sparking feedback to the US Federal Trade Commission, MLex has learned.