Developers Alliance Releases Statement on CMA’s Review of GIPHY / META Merger

UK Competition and Markets Authority mandates the global divestiture of Giphy, a company with no ties to the UK.

Washington, D.C. / Brussels, Belgium, Oct. 18, 2022 – The Developers Alliance has released the following statement on CMA’s final report on the completed acquisition by Facebook/Meta of Giphy 

Key Facts

  • The Developers Alliance intervened in the case to argue against the extraterritorial remedy imposed on Giphy, a U.S. startup with no UK ties.
  • In its final report following appeal, the CMA maintained its stance that the Giphy/Meta merger would harm competition in the UK.
  • The UK regulator’s imposition of an extraterritorial divestiture remedy will damage the UK innovation economy and the country’s reputation in the global startup community.

Bruce Gustafson, CEO of the Developers Alliance, issued the following statement: 

“No one is helped, and everyone is harmed, by the CMA’s intervention today: Giphy loses the partner they’ve selected, venture capital loses its confidence in the potential of future UK startups, and tech startups the world over must now hedge against the UK regulator’s international overreach. The citizens of the UK gain nothing in exchange for inviting foreign regulators to intervene in their own domestic market.

Most of all we empathize with Giphy’s employees, who are the ones most impacted by the CMA’s actions, and we encourage the CMA to reflect on today’s outcome in hopes they will chart a better course in the future.”

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By Bruce Gustafson

Bruce is the President and CEO of the Developers Alliance, the leading advocate for the global developer workforce and the companies that depend on them. Bruce is also the founder of the Loquitur Group, a DC consulting firm, and the former VP and head of the DC Policy office of Ericsson, a global information and communications technology company, focusing on IPR, privacy, IoT, spectrum, cybersecurity and the impact of technology and the digital economy. He has previously held senior leadership positions in marketing and communications at both Ericsson and Nortel, as well as senior roles in strategy and product management across wireless, optical and enterprise communication product portfolios.

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