Facebook under investigation over Giphy deal by the competition authority.
The UK Competition and Markets Authority (CMA) is investigating Facebook over its deal to purchase the gif media service Giphy.
The CMA has sent a replacement order to Facebook which effectively puts a cease on the merging of Giphy into Facebook until they can determine if there will still be enough competition in the market as Giphy is used by Facebook’s competition TikTok, Snapchat and Twitter.
The CMA said "may be expected to result in a substantial lessening of competition"
A Facebook company spokesperson said that Giphy "improves Instagram's offerings by giving people more features and tools".
The CMA has given until the 3rd July 2020 to invite comments with no date set for its overall decision.
Facebook has responded by saying "We are prepared to show regulators that this acquisition is positive for consumers, developers and content creators alike," they said.
Josh Howley the Republican senator for Missouri said that "Facebook keeps looking for even more ways to take our data… Facebook wants Giphy so it can collect even more data on us."