27.8 C

Facebook fined $70 million for withholding information about Giphy acquisition

The U.K.’s competition regulator fined Facebook Inc. 50.5 million British pounds, equivalent to approx. $70 million, alleging it breached reporting requirements during a continuing review of its proposed takeover of Giphy, a provider of animated images for use in social media.

The Competition and Markets Authority(CMA) alleges that the social media giant deliberately withheld information related to the $400 million purchase of the popular GIF repository, which it announced in May last year.

As per the CMA, Facebook has failed to follow the standard oversight process — failing to provide the regulator with required information related to an initial enforcement order (IEO) placed on it by the watchdog, despite repeated requests for it to do so.

In June 2020, the CMA had issued an initial enforcement order (IEO) to Facebook after it announced the Giphy acquisition. These types of orders prevent companies from merging while an investigation is ongoing. The companies would require to function as they would have without the merger for as long as the investigation isn’t complete.

- Advertisement -TechnoSports-Ad

As part of this process, Facebook was required to provide regular updates to the CMA about its compliance with the IEO. However, the CMA alleges that the company “significantly limited the scope of those updates”. It didn’t budge despite repeated warnings from the regulatory body, deliberately refusing to report all the required information.

This is the first time the UK competition regulator has found a company consciously refusing to comply with such orders. As a result, the CMA has now issued a £50 million fine to Facebook. It has also fined the company another £500,000 for swapping its Chief Compliance Officer twice without permission during the investigation. The CMA says it’s a major breach that “fundamentally undermined its ability to prevent, monitor and put right any issues.”

The tech giant was also criticised last year by the Competition Appeal Tribunal and Court of Appeal over its lack of cooperation with the CMA — with judges calling it out over what they suggested “might be regarded as a high-risk strategy” in relation to not complying with the IEO and not keeping the CMA updated as the order required.

- Advertisement -TechnoSports-Ad

Also Read:


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Astitva Patle
Astitva Patle
Content writer with have a experience of more than 1 and a half year in this field. If you like my content and wanna give me opportunity then please contact at [email protected]



Related Stories

More from author

iQOO 9 series could come in India in Q1 2021 with Snapdragon 8 Gen 1

iQOO the Vivo’s sub-brand has unveiled the iQOO 8 and iQOO 8 Pro smartphones in China in the month of August this year. Both...

Apple Music 2021 Top Charts are here: Check all the highlights

Apple Music Top 100 charts 2021 list is in front of us. BTS's Dynamite band from South Korea is the most-streamed song in 2021...

Samsung dominates the Global Foldable smartphone market with 93% Share

The global foldable phone market seems to have reached new heights in Q3 2021, at the same time when Samsung unveiled the Galaxy Z Fold...

Xiaomi 12 will be the first smartphone powered by Snapdragon 8 Gen 1

Xiaomi is working on its new flagship device and it can be anticipated to launch in December during a launch event. The Xiaomi 12 and Xiaomi 12X flagship handsets will be launched in China first and also it'll make its debut in other requests. In a recent tweet,...