Meta fined £1.5m in UK over Giphy takeover

The British competition watchdog fined Meta £1.5 million for failing to notify the authority of the departure of three executives. Meta should have done that in connection with the investigation into the acquisition of Giphy.

Meta should have informed the Competition and Markets Authority about the departure of three employees based on the initial enforcement order issued by the watchdog in June 2020. The CMA imposed that order at the start of its investigation into Facebook’s takeover of the GIF platform Giphy, as Meta was then called.

Part of the order is that Meta is required to proactively notify the CMA of significant changes that could affect the company’s business. This includes the departure of key executives. According to the authority, Meta should also have asked for permission to fill the vacant positions or to transfer the responsibilities elsewhere. According to the CMA, the fact that these were important employees is apparent from their presence on a list provided by Meta.

The fine of 1.5 million pounds, converted 1.8 million euros, is a lot lower than that of October 2021. Then the CMA imposed a fine of 50 million pounds, also for violating the initial enforcement order. That was because Meta didn’t keep the CMA informed enough about complying with the order.

Meta plans to pay the new fine. A spokesperson told Reuters: “It is problematic that the CMA can make decisions that directly impact the rights of our American employees, who are protected under American law.” Meta and the CMA have been at odds for some time. The British authority determined in November last year that Meta Giphy had to sell again, because the takeover would lead to a disruption of the market. Meta has appealed against that decision.