Protocol: Why tech foes are psyched the UK told Meta to sell Giphy
Big Tech foes in the U.S. woke up this week feeling a little envious of the United Kingdom: On Tuesday, the U.K.’s Competition and Markets Authority ordered Meta, formerly known as Facebook, to sell Giphy to address concerns about the impact of the deal on competition.
For reasons big and small, that decision moves us one step closer to the world that champions of bringing down the competition hammer on Meta and other Big Tech companies want to see in the U.S.
Tech skeptics have for years rallied around calls to break up Facebook, even as they know any path to do so through the U.S. courts is unsure and would, at best, take years. The U.K. regulator, meanwhile, ordered Meta to unwind the $315 million purchase of Giphy, just a year and a half after Facebook said it would buy the search engine, hosting and sharing platform for animated GIF images.
“Facebook built its monopoly power through a series of brazenly anticompetitive acquisitions, of which Giphy is a great example,” said Robyn Shapiro, director of communications for the American Economic Liberties Project, a group advocating for the expansion of antitrust thinking to curb tech companies. “The U.K.’s Competition and Markets Authority is right to unwind this illegal merger.”