Competition and Trademark Office (SMA) ordered Target get rid of the purchase GIPHYa company he wanted to acquire for $400 million.
The ruling came after the American company lost a lawsuit in the Competition Court of Appeals.
Reasons for the decision
SMA has been investigating the purchase since May 2020, when Facebook announced the importance of said acquisition.
For a subject who Targetwith its networks Instagram, Facebook and WhatsApp, maintains the largest repository of GIFs, this will hurt the competition for other social networks.
Target dismissed these claims and appealed the November 2021 sale order. GIPHYarguing that the improvements will eventually provide “more choice for everyone”.
Now, after further consideration of the appeal process, SMA noted another reason to believe that “the deal could hurt competition by limiting competitors’ access to GIFs, demanding unfavorable terms and reducing digital advertising opportunities.”
Meta will decide
After the decision Target announced its acceptance.
“We are disappointed with the decision SMA, but we take today’s decision as the final word on this matter,” the company said in a statement. “We will work closely with SMA in alienation GIPHY. We are grateful to the team at this difficult time for their business and wish them all the best. We will continue to evaluate opportunities, including through acquisitions, to bring innovation and choice to more people in the UK and around the world.”
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Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.