Giphy Acquisition not transparent, Facebook fined IDR 982 billion - Teknomedia

22 Oktober 2021

Giphy Acquisition not transparent, Facebook fined IDR 982 billion

The UK business competition watchdog has fined Facebook 50 million pounds or around Rp 982 billion for allegedly hiding information related to the acquisition of startup Giphy.

It is known that Facebook acquired Giphi for USD 400 million or around Rp. 5.6 trillion in 2020. And last August, Competition and Market (CMA) conducted an anti-omnopoly investigation against Facebook.

Reported from The Verge , the CMA issued enforcement orders early (IEO), which prohibits the further integration between Facebook and Giphy which should allow the company to continue to compete as if no acquisition at all.

Facebook failed to provide the necessary updates on its compliance with the IEO despite receiving several warnings.

"We warn Facebook that its refusal to provide us with material information is a breach of injunction, but, even after losing appeals in two separate courts, Facebook continues to ignore its legal obligations," Joel Bamford, Senior Mergers Director at CMA.

The CMA even added that this was the first time in the history of prosecution that a company had been found knowingly violating such an order.

"In light of the multiple warnings Facebook has given , the CMA considers that Facebook's failure to comply was intentional."

Quoting from CNCB, Facebook also denied and condemned this punishment. The company will take steps to protect its rights against these allegations.

"We will review the CMA's decision and consider our options," the company wrote.