Facebook's Acquisition of GIPHY: Potential Competition Issues [Updated April 6, 2021] [open pdf - 564KB]
From the Document: "On May 15, 2020, Facebook announced [hyperlink] that it had acquired GIPHY [hyperlink], an online database and search engine for short looping videos without audio, known as GIFs [Graphics Interchange Formats]. Facebook has not integrated GIPHY with its other online platforms (i.e., websites and apps). An Interim Enforcement Order [hyperlink] filed by the U.K. Competition and Markets Authority (CMA) on June 9, 2020, requires Facebook and GIPHY to operate as separate businesses during the CMA's investigation on the effect of the acquisition on competition. On March 25, 2021, the CMA published its initial assessment [hyperlink] that the merger raised competition concerns. A letter from Facebook [hyperlink] to Members of the House Subcommittee on Antitrust, Commercial, and Administrative Law states that a premerger notification under the Hart-Scott-Rodino Act [hyperlink] was not filed because the acquisition did not pass the relevant statutory test. In June 2020, the Department of Justice and the Federal Trade Commission were reportedly seeking to review the acquisition [hyperlink]. Facebook is now facing antitrust lawsuits, some of which focus on its past acquisitions. This Insight discusses how Facebook's acquisitions can affect competition in digital advertising and the potential implications of the antitrust lawsuits on Facebook's acquisition of GIPHY."
CRS Insight, IN11411
Congressional Research Service: https://crsreports.congress.gov/