UK Watchdog Fines Facebook GBP50.5 Million Over Giphy Merger Breach

By Anthony O. Goriainoff

The U.K. Competition and Markets Authority said on Wednesday that it has fined Facebook Inc. 50.5 million pounds ($69.6 million) for breaching the initial enforcement order it imposed during its investigation into the company's purchase of Giphy.

The watchdog said that its investigation into Facebook's merger with Giphy is continuing and that it hasn't yet made a decision on the matter.

The CMA said that Facebook is required to provide it with regular updates outlining its compliance and that the company had breached the order by consciously refusing to report all the required information.

The CMA said it had it had given Facebook multiple warnings and that it considers the company's failure to comply was deliberate.

"We warned Facebook that its refusal to provide us with important information was a breach of the order but, even after losing its appeal in two separate courts, Facebook continued to disregard its legal obligations. This should serve as a warning to any company that thinks it is above the law," the CMA said.

The regulator said it had also fined Facebook GBP500,000 for changing its chief compliance officer on two separate occasions without first seeking its consent.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

October 20, 2021 05:40 ET (09:40 GMT)

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