UK Fines Facebook $70 Million For Breaching Order In Giphy Deal
The UK’s competition regulator has fined social media giant Facebook £50.5 million (approximately $70 million) for breaching an order imposed during its investigation into Facebook’s purchase of GIF platform Giphy.
The Competition and Markets Authority (CMA) said the social media giant had purposefully failed to comply with its order. The UK’s competition regulator also said that the penalty imposed served as a warning that no company was above the law. In recent times, Facebook’s business practices have caused it to increasingly come under fire from regulators and lawmakers.
According to the CMA, Facebook failed to provide complete updates about its compliance with requirements to continue to compete with Giphy and failed not to integrate Giphy’s operations with its own while investigations were underway. Despite numerous warnings, the social media giant did not provide the necessary information, the CMA said. The regulator believes its failure to comply was deliberate.
However, Facebook has said, “We strongly disagree with the CMA’s unfair decision to punish Facebook for a best effort compliance approach, which the CMA itself ultimately approved.
“We will review the CMA’s decision and consider our options.”