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
- 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.”