According to Bloomberg News, Facebook once again escaped antitrust scrutiny in its $400 million Giphy acquisition. report Two sources with knowledge of the matter were cited. If history can be used as any indicator, then Facebook can and will do whatever it wants.
An unnamed source told Bloomberg that Giphy paid investors dividends, which was enough to reduce its assets, so that Facebook and Giphy could avoid alerting antitrust regulators when social media behemoths Move to buy a gif-based company May 2020. This approach is legal, but it provides strong reasons for those appointed by the Biden administration to push for promised antitrust reforms.
The report was released a few days after the Federal Trade Commission (FTC) released Accused in a renewed lawsuitOver the years, Facebook has illegally buried a series of small competitors.
According to federal law, Facebook and Giphy must submit a pre-merger notice to the FTC and the Department of Justice (DOJ) if the minimum value of the transaction was reached during the acquisition last year Exceed 94 million US dollars.
Giphy declined to comment in an email to Gizmodo. Facebook did not comment on the so-called Giphy spending, but claimed the benefits of Giphy integration for Instagram users, and separately called the FTC’s antitrust lawsuits “unfounded.”
Its acquisition of Giphy implies that Facebook has little fear of antitrust regulators. This is based on the reasonable assumption that it is indestructible after years of rampant allegedly violating antitrust laws. When the FTC announced the acquisition of Giphy in May 2020, Already under investigation The company may violate antitrust laws.Last month, a federal judge throw it out Previous litigation by the US Federal Trade Commission was repeated, arguing that it did not provide sufficient evidence to show that Facebook has an illegal monopoly on social media. The judge granted the committee 30 days to retry the revised complaint.
In the complaint filed last Thursday, the FTC Quote Facebook acquires competitors and closes them (such as voting app “tbh” and AR-enabled music video app EyeGroove) or capitalizes on their long-term practices (Instagram and WhatsApp). The FTC wrote that Facebook just doesn’t have the ability to “fairly” compete, which became apparent after “several costly failures”, and it appealed to “acquiring new innovators who succeeded where Facebook failed.”
“Access to these competitive threats [Instagram and WhatsApp] Enable Facebook to maintain its dominant position-harming competition and users-not through competitive advantage, but through avoiding competition,” the lawsuit reads. The FTC requires it to be separated from Instagram and WhatsApp.
The purpose of buying Giphy is On the surface Allow Instagram users to access the Giphy library in Stories and DM.Some Hypothesis Facebook may be so careful that it seems logical to use the service to track popular gif and commission fraud.