The CMA Just Ordered Meta to Sell Giphy. How Will This Impact Shareholders?
The U.K.'s Competition and Markets Authority (CMA) just reaffirmed a previous decision against Meta Platforms (NASDAQ: META), namely that the social media giant will have to unwind its early-2021 acquisition of Giphy. GIFs (an image or short video animation) aren't exactly big business, but the CMA is making this order in the name of keeping advertising open and fair in the U.K.
The CMA came to this conclusion in November 2021, which Meta (then still known as Facebook) challenged. After further review, the regulatory organization is upholding its command. Meta has said it will abide. What does this mean for Meta shareholders?
The CMA could be setting a new precedent here. This is the first time a regulatory body has ordered a big tech company to backtrack a prior acquisition. Meta is dealing with a number of legal matters from regulators, like a lawsuit in the U.S. from the Federal Trade Commission (FTC) to unwind the company's now-nearly-decade-old purchases of Instagram and WhatsApp. The FTC is also trying to block Meta from acquiring virtual reality game developer Within Unlimited.
Source Fool.com
