Facebook Fights U.K. Merger Regulator Over Giphy Acquisition

[Jet_ski]

Summary

Facebook Inc is complaining about the overreach of the U.K.’s merger watchdog, warning that its demands were unreasonable and disproportionate.

 

Facebook Inc has appealed to the U.K.’s antitrust tribunal, saying that the Competition and Markets Authority, which is considering investigating Facebook’s purchase of Giphy, has so far refused to ease up on requirements ensuring that the two companies remain separate during the merger probe.

 

The CMA is increasingly voicing concerns about internet giants swallowing up smaller firms. Facebook had to pause its integration with Giphy in June after the CMA said it wanted to investigate whether the deal would give Facebook too much information on its rivals’ operations.

 

The CMA said previously there is “a general lack of independence of the Giphy business from Facebook” due to certain clauses in Facebook employment contracts that Giphy employees were transferred to. It also said members of Giphy’s senior management team have left the business and Giphy employees have received restricted stock units in Facebook.

 

Quotes

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The CMA is increasingly voicing concerns about internet giants swallowing up smaller firms. Facebook had to pause its integration with Giphy in June after the CMA said it wanted to investigate whether the deal would give Facebook too much information on its rivals’ operations.

 

My thoughts

The UK regulators have caught up to big tech’s anticompetitive tactics. What is described by the British regulator is exactly how big tech has been stifling competition.

I want to see more of this everywhere. Specially in the US where anti-trust regulators have been MIA for over a decade now.

 

Sources

 https://www.bloomberg.com/amp/news/articles/2020-08-28/facebook-fights-u-k-merger-regulator-over-giphy-acquisition

[Qub3d]

Woah, hold up -- FB is complaining that they can't merge during an anti-trust investigation?

 

"Jeez, officer, stop arresting me. I want to keep robbing this bank until a jury finds me guilty of robbery!"

[Bombastinator]

10 hours ago, Jet_ski said:

Summary

Facebook Inc is complaining about the overreach of the U.K.’s merger watchdog, warning that its demands were unreasonable and disproportionate.

 

Facebook Inc has appealed to the U.K.’s antitrust tribunal, saying that the Competition and Markets Authority, which is considering investigating Facebook’s purchase of Giphy, has so far refused to ease up on requirements ensuring that the two companies remain separate during the merger probe.

 

The CMA is increasingly voicing concerns about internet giants swallowing up smaller firms. Facebook had to pause its integration with Giphy in June after the CMA said it wanted to investigate whether the deal would give Facebook too much information on its rivals’ operations.

 

The CMA said previously there is “a general lack of independence of the Giphy business from Facebook” due to certain clauses in Facebook employment contracts that Giphy employees were transferred to. It also said members of Giphy’s senior management team have left the business and Giphy employees have received restricted stock units in Facebook.

 

 

Quotes

 

My thoughts

The UK regulators have caught up to big tech’s anticompetitive tactics. What is described by the British regulator is exactly how big tech has been stifling competition.

I want to see more of this everywhere. Specially in the US where anti-trust regulators have been MIA for over a decade now.

 

Sources

 https://www.bloomberg.com/amp/news/articles/2020-08-28/facebook-fights-u-k-merger-regulator-over-giphy-acquisition

Might happen depending on who wins the US election.  Seems pretty up in the air atm. Popular vote doesn’t seem to count like it used to. The last two GOP presidents lost the popular vote when initially elected.

[Mark Kaine]

Oh, now I know why giphy went to shit recently to the point of being unusable... 

 

 

And just when Google bought YouTube and made it shit there really isn't a good alternative (which apparently is the point of such acquisitions) 

 

I mean, it's not illegal? Maybe it's time to make it though. (it was about time 10 years ago already but yeah) 

[Qub3d]

On 8/29/2020 at 12:44 PM, Mark Kaine said:

And just when Google bought YouTube and made it shit there really isn't a good alternative (which apparently is the point of such acquisitions)

#FloatPlane?

 

Just kidding. I agree, it sucks having a general-purpose alternative to YT.

[LAwLz]

On 8/29/2020 at 6:44 PM, Mark Kaine said:

And just when Google bought YouTube and made it shit there really isn't a good alternative (which apparently is the point of such acquisitions) 

Something tells me you didn't actually use Youtube before Google bought them.

If pre-Google Youtube launched today you would be laughing your ass off at how terrible it would be. Google has made Youtube much, much better.

[Trik'Stari]

On 8/28/2020 at 11:37 PM, Bombastinator said:

Might happen depending on who wins the US election.  Seems pretty up in the air atm. Popular vote doesn’t seem to count like it used to. The last two GOP presidents lost the popular vote when initially elected.

Because that's not how that particular system works, nor has that ever been how it worked.

 

It's the majority of people in the majority of places, rather than a simple overall majority. It gives less populated states a chance to exert some amount of authority over places like NYC and California which have disproportionately high populations compared to the entire rest of the country.

 

We should switch to ranked choice voting, but keep the electoral college. I'd prefer California and NYC not rule over the entire country. If anything does happen, NYC and California should be broken up to ensure they don't continue to wield excessive amounts of voting authority.