Commenting on the Competition and Markets Authority’s decision to order Meta to sell Giphy, Matthew Lesh, Head of Public Policy at free market think tank the Institute of Economic Affairs, said:

“The CMA’s treatment of Meta in relation to the Giphy case is troubling — from failing to disclose information central to the case to their incredible claim that a gif search engine, with no advertising revenue in the UK, had a chance of competing with Meta’s advertising business. 

“The potential for acquisition is a key driver of investment into start-ups, driving significant innovation. The CMA’s interventionist approach in the Giphy case risks undermining the digital economy.

“If nothing else, this case demonstrates the extensive powers already held by the CMA and highlights the risks posed by the proposed Digital Markets Unit.”

ENDS

Notes to editors

Contact: media@iea.org.uk / 07763 365520

IEA spokespeople are available for interview and further comment.

Further IEA reading: Powering Up: How will the Digital Markets Unit affect competition and innovation, by Victoria Hewson and Dr Cento Veljanovski