UK’s Competition and Markets Authority (CMA) has fined Facebook £50 million for failing to disclose details about its acquisition of Giphy, a GIF publishing service.
The CMA imposed the penalties on Wednesday, alleging that Facebook withheld the information on purpose.
The CMA said in June that it had “provisionally” concluded that Facebook’s acquisition of Giphy risked undermining competition in social media and display advertising markets.
Last year, the CMA asked Facebook to halt its acquisition of Giphy so that it could investigate the transaction.
The CMA also required the social network to notify it on a regular basis of “any major events” pertaining to Giphy or Facebook’s operations, such as modifications to client contracts and details of key employees who leave or join the company.
The CMA believes that Facebook has continued merging with Giphy despite the demand for a halt.
However, the CMA has the ability to investigate a foreign firm if the combined merger would have “at least a 25% share of any fair market.”
In addition to the £50 million punishment, the CMA is fining Facebook £500,000 ($689,000) for replacing its chief compliance officer twice without first getting permission from them.
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