UK’s Competition and Markets Authority (CMA) has fined Facebook a mammoth £50.5 million (€60 million approx.) for breaching an order imposed during an investigation about the company’s purchase of GIF platform Giphy. Facebook had deliberately failed to comply with this order, and the penalty served as a warning that no company was above the law- CMA said in a press release.
Giphy is now available in Facebook and in apps like WhatsApp which comes under the company’s ownership. People can use Giphy GIFs to send replies as same as emojis. GIF files of different emotions and situations are also available.
The UK regulator added that Facebook had failed to provide full updates about its compliance with requirements to continue to compete with Giphy and not integrate its operations with Giphy’s while its investigation was ongoing.
Facebook was required to provide the CMA with regular updates outlining its compliance with the initial enforcement order (IEO). It was crucial for the regulator to monitor the company’s behaviour, including whether Facebook has been taking any action which might not prejudice the outcome of its investigation. But Facebook limited these updates even after multiple warnings from CMA, says the press release.
“We warned Facebook that its refusal to provide us with important information was a breach of the order but, even after losing its appeal in two separate courts, Facebook continued to disregard its legal obligations.” said Joel Bamford, senior director of mergers at the CMA.
“This should serve as a warning to any company that thinks it is above the law,” he added.
According to CMA, the failure to provide updates was a deliberate action by the social media giant.
Additional reporting by: Republic World