British watchdog orders Facebook to sell Giphy; stifles competition for animated images

The United Kingdom's antitrust watchdog has blocked Facebook's acquisition of Giphy and ordered the social network to sell off the GIF-sharing platform, saying the deal hurts social media users and advertisers by stifling competition for animated images. It's reportedly the first time the watchdog has sought to unwind a tech deal.

After consulting with other businesses and groups and assessing alternative solutions proposed by Facebook, the watchdog said it "concluded that its competition concerns can only be addressed by Facebook selling Giphy in its entirety to an approved buyer."

"By requiring Facebook to sell Giphy, we are protecting millions of social media users and promoting competition and innovation in digital advertising," said Stuart McIntosh, chair of the group that carried out the investigation.