Facebook-Owner Meta says it will pay a new $ 2 million UK fine


London — UK competition regulators said on Friday that Facebook owner Meta was fined £ 1.5 million ($ 2 million) for a new issue with the purchase of Giphy.

The UK’s Competition and Markets Authority (CMA) has had tight ties with key tech groups in recent years, investigating market advantages such as digital advertising and trying to block Facebook and Giphy transactions.

CMA ordered Meta to sell Giphy, an animated image platform acquired for $ 400 million in May 2020, after determining that the bailouts offered by U.S. companies did not answer concerns about the impact on digital advertising. ..

On Friday, Meta said it did not comply with certain aspects of Giphy’s handling requirements, and US companies did not notify UK regulators that key staff had left Meta.

The CMA called this a serious and particularly significant property that “meta did not comply” with the rules it set to ensure that the two companies still competed with each other and did not integrate while the regulator was investigating the transaction. I explained that.

Friday’s announcement shows a new deterioration in relations between US tech giants and UK regulators.

CMA fined Facebook £ 50.5m for other violations last October and ordered Meta to sell Giphy. Meta is appealing for a decision to sell. It said on Friday that it did not agree with CMA’s latest fine but would pay it.

He added that staff retirement cannot be prevented.

“We’re going to pay a fine, but it’s a problem that the CMA can make decisions that could directly affect the rights of US employees protected under US law,” the spokesperson said. Man said.

Reuters

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