LONDON (ShareCast) - (Sharecast News) - The UK's Competition and Markets Authority said on Thursday that Facebook's acquisition of Giphy raises competition concerns.

Giphy competed with Facebook outside the UK in digital advertising through paid partnerships with other brands prior to the deal, said the watchdog.

It claims that Giphy could have "less incentive" to expand its digital advertising if it remains merged with FB.

The CMA already completed the first phase of its investigation which launched on 28 January of 2021.

If both companies provide "legally binding proposals" that address concerns in the next five working days, the watchdog said it would not proceed with the second phase of the inquiry.

The deal was announced in May last year and is reportedly worth $400m.

The deal is also being investigated by the Australian Competition and Consumer Commission.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE