UK Wants Facebook To Sell Off Popular GIF-Making Website 'Giphy': Here's Why

While Mark Zuckerberg is busy selling Facebook's vision for the metaverse, regulators around the world are keeping a close eye on Meta's anti-competition practices.

The competition regulator in the United Kingdom has asked Facebook to sell off Giphy, a popular GIF-making and sharing portal. Facebook (now Meta) had bought Giphy about a year and a half ago.

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"An approved buyer" for Giphy

In its press release, the Competition and Markets Authoirty (CMA) announced that Facebook must sell Giphy to "an approved buyer" to prevent competition from being harmed.

According to the CMA, Facebook's acquisition of Giphy could limit other platforms' access to its GIFs, naturally driving traffic to Meta's pool of services - Facebook, WhatsApp, and Instagram.

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In addition, the CMA found that Giphy's advertising services could have easily competed with Meta's, but those were shut down owing to the acquisition by Facebook.

¡°The tie-up between Facebook and Giphy has already removed a potential challenger in the display advertising market," the statement read.

"Protecting users on social media"

The CMA added how "without action," Facebook would "increase its significant market power in social media even further, through controlling competitors' access to Giphy GIFS."

The chair of the independent inquiry group Stuart McIntosh in a statement added that their move is intended to protect "millions of social media users and promoting competition and innovation in digital advertising."

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This suggestion is especially significant because CMA has never before asked a tech giant to reverse an acquisition, setting a precedent for future proceedings.

Meta, though, could appeal the decision and never sell Giphy. Regardless, it appears that Mark Zuckerberg's woes are far from over, even as the company braces for metaverse adoption.

What do you think - should Facebook be forced to sell of Giphy? Let us know in the comments below. For more in the world of tech and science, keep reading Indiatimes.com.