Facebook’s acquisition of animated picture platform Giphy can be probed as planned by the UK competition regulator, a tribunal court ruled Friday, November 13.
The Competition and Markets Authority (CMA) announced in June that it had begun a probe into the deal amid fears that it could reduce competition in the UK.
It issued an “Initial Enforcement Order” (IEO) that prevents the two companies from integrating while the CMA conducts its initial investigation.
Following the IEO, Facebook requested a “derogation” and asked for a substantial part of its business to be exempt. But the CMA stated it had not receive the “necessary information from Facebook to reach a decision.”
Facebook applied for a review of the CMA’s position, but on Friday the UK’s Competition Appeal Tribunal dismissed all of Facebook’s grounds of appeal.
CMA Chief Executive Andrea Coscelli said in a statement, “This is an important judgment from the Competition Appeal Tribunal and sends a clear message — initial enforcement orders are an essential part of the CMA’s merger toolkit, enabling it to protect both market competition and consumers as it undertakes merger reviews.”
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