(Bloomberg) — Meta Platforms Inc.’s purchase of GIF search engine Giphy will be sent back to the UK antitrust regulator for a further review after a court found concerns in the agency’s investigation approach.
A judge quashed the Competition and Markets Authority’s order that Meta must sell Giphy, according to a ruling made public Monday. The case will now be referred back to the CMA for the watchdog to reconsider whether the deal would reduce competition in the market for display advertising and social media services.
“We have agreed to reconsider our decision in light of this finding,” the CMA said in a statement, saying that it aimed to complete the review within three months.
Meta has been stuck in a dispute with the regulator since it was ordered to unwind its $315 million 2020 acquisition of the GIF maker. It was the first time a global regulator has attempted to force a Big Tech firm to unwind a completed deal, signaling a tough regulatory approach to the market power of Silicon Valley giants.
But in their ruling, appeal judges at the Competition Appeal Tribunal ruled that the watchdog didn’t consult properly on certain aspects of its investigation and wrongly redacted material which undermined the decision.
Meta will be given the chance to comment on the CMA’s full unredacted final report.
A Meta spokesperson declined to comment.
(Updates with more detail in the sixth paragraph)
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