UK fines Facebook over £50 million for Giphy takeover breach | Inquirer Technology
Close  

UK fines Facebook over £50 million for Giphy takeover breach

/ 09:08 PM October 20, 2021
UK fines Facebook over £50 million for Giphy takeover breach

A tablet screen displays the logo of the social networking site Facebook through a magnifying glass, in Bogota, on March 22, 2018. 9Photo by LUIS ACOSTA / AFP)

London, United Kingdom Britain’s competition watchdog said Wednesday it had fined social network giant Facebook over £50 million for a “deliberate” failure to supply information linked to its takeover of animated graphics startup Giphy.

The Competition and Markets Authority (CMA) said the fine totaling £50.5 million ($69.5 million, 60 million euros) was imposed for “consciously refusing to report all the required information” concerning the purchase last year.

ADVERTISEMENT

“We warned Facebook that its refusal to provide us with important information was a breach of the order but, even after losing its appeal in two separate courts, Facebook continued to disregard its legal obligations,” Joel Bamford, senior director of mergers at the CMA, said in a statement.

“This should serve as a warning to any company that thinks it is above the law.”

FEATURED STORIES

The CMA said it was the first time a company had been found to have consciously breached such an order.

“Given the multiple warnings it gave Facebook, the CMA considers that Facebook’s failure to comply was deliberate.”

Facebook hit out at the fine in a statement.

“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,” it added.

It comes as Facebook faces a storm of criticism since a whistleblower leaked internal studies showing the company knew its sites could be harmful to young people’s mental health.

US authorities have struggled to regulate social media platforms like Facebook amid criticism that the tech giants trample on privacy and provide a megaphone for dangerous misinformation.

ADVERTISEMENT

US authorities on Tuesday said Facebook had agreed to pay up to $14 million to settle a government lawsuit accusing the tech giant of favoring immigrant applicants for thousands of high-paying jobs.

In the UK, the CMA on Wednesday added it had fined Facebook £500,000 for changing its chief compliance officer on two separate occasions without first seeking consent.

The watchdog also said its investigation into Facebook’s takeover of Giphy remains ongoing.

Facebook announced in May 2020 its purchase of Giphy for a reported $400 million.

Giphy is a platform and search engine for “stickers” and other products using the graphics interchange format or GIFs.

The latest tech news delivered to your inbox

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.
TOPICS: app, Business, Facebook, fine, GIPHY, Social Media, technology, UK
Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

For feedback, complaints, or inquiries, contact us.

Subscribe to our technology news

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.



© Copyright 1997-2022 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.