Tech

Facebook has fined $ 70 million in the UK for withholding information in a Giphy acquisition investigation.

Facebook, the king of the social media market, continues to grow quarterly. However, such growth comes at a cost, and the company continues to face scrutiny from regulators around the world.Reportedly Change Its name, the social media giant, is aiming to move into a “metaverse company” and has been fined £ 50.5 million ($ 69.6 million) by the Competitive Markets Authority (CMA).

UK competition regulators have fined Facebook for violating orders imposed during an investigation into Facebook’s purchase of the popular GIF platform Giphy. Facebook has been found to have deliberately withheld information related to the investigation.

“We warned Facebook that refusing to provide important information was a breach of order, but Facebook continued to ignore its legal obligations after losing appeals in two separate courts,” CMA said. Said Joel Bamford, Senior Director of Mergers. Said. “This should serve as a warning to companies that think they are beyond the law.”

CMA has been considering acquisitions since it was revealed to reduce competition in the digital advertising market, which is dominated by Facebook.

Social media leaders apparently failed to prove the CMA with the necessary information related to the Initial Enforcement Order (IEO) issued by the CMA. After Facebook repeatedly requested but did not, the CMA considered the failure intentional.

The IEO will stop further integration and ensure that the companies are competing with each other. According to CMA, Facebook did not provide a complete update on compliance with the requirement to continue to compete with Giphy and not integrate its operations with those of the GIF platform.

“This is the first time that the CMA has been found to have violated the IEO by consciously refusing to report all necessary information,” said the CMA, “a large fine for this serious breach.” Has weakened the ability to prevent, monitor, and fix problems. “

“We strongly oppose CMA’s unfair decision to punish Facebook with a best-effort compliance approach that CMA itself finally approved. We will consider CMA’s decision and consider options,” Facebook said. Stated.

Facebook has fined $ 70 million in the UK for withholding information in a Giphy acquisition investigation.

Source link Facebook has fined $ 70 million in the UK for withholding information in a Giphy acquisition investigation.

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