The UK competition watchdog has fined Facebook 50 million pounds for allegedly deliberately hiding information related to the acquisition of startup Giphy.
It is known that Facebook acquired Giphi for USD 400 million in 2020. And last August Competition and Markets (CMA) conducted an anti-omnopoly investigation against Facebook.
The CMA issued an early enforcement order (IEO) prohibiting further integration between Facebook and Giphy that should allow the companies to continue competing as if there were no acquisitions at all.
Facebook failed to provide the necessary updates on its compliance with the IEO despite receiving several warnings.
"We warn Facebook that its refusal to provide us with material information is a breach of injunction, but, even after losing appeals in two separate courts, Facebook continues to ignore its legal obligations," Joel Bamford, Senior Mergers Director at CMA.
The CMA even added that this was the first time in the history of prosecution that a company had been found knowingly violating such an order.
"In light of the multiple warnings Facebook has given, the CMA considers that Facebook's failure to comply was intentional."
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Quoting from CNCB, Facebook also denied and condemned this punishment. The company will take steps to protect its rights against these allegations.
"We will review the CMA's decision and consider our options," the company wrote.
