Facebook is facing a new fine related to its Giphy acquisition case.
In May 2020, Facebook acquired the popular GIF repository Giphy. Since then, the UK’s Competition Authority (CMA) has launched an investigation into whether the merger with Giphy would reduce competition. As part of that investigation, it said that Facebook could not proceed with merger-related activities (product integration, group mergers, and so on) without prior approval from the CMA.
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Now, new information suggests that the British commission has fined Facebook £50.5 million ($70 million) for breaching the above orders. “This is the first time that a company has been found to have breached an order by knowingly refusing to report all the required information,” the CMA said in a press release.
The CMA said the popular social media platform significantly limited the information and updates required by the British authority, despite repeated warnings. Essentially, Facebook was fined for failing to comply and cooperate with the CMA.
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In response, a Facebook spokesperson made the following statement: “We strongly disagree with the CMA’s unfair decision to penalize Facebook. We will look back at the CMA’s decision and consider our options.”
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The CMA said it also fined Facebook £500,000 ($700,000) for changing its Chief Compliance Officer without seeking consent. Facebook saw net revenue of $29.4 billion in 2020, so these fines don’t really hurt it. However, Facebook’s troubles with the CMA aren’t over yet, as the authority has yet to make a decision on the GIPHY acquisition itself.
Today, it was also announced that Facebook is planning to change its name soon, in an effort to further reflect its focus on the metaverse.
Source: Engadget
