Associated Press Archives | Email alerts

Oct. 20, 2021, 12:42 p.m. EDT

Facebook fined $69.4 million by U.K. for failing to supply data during Giphy investigation

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Meta Platforms Inc. (FB)

or Cancel Already have a watchlist? Log In

By Associated Press

LONDON (AP) — Britain’s competition watchdog fined Facebook /zigman2/quotes/205064656/composite FB +1.55% $69.4 million on Wednesday for violating rules during the U.K. investigation into the social media giant’s purchase of Giphy.

The Competition and Markets Authority said Facebook failed to provide the required information during the probe. It said it gave the platform multiple warnings and “considers that Facebook’s failure to comply was deliberate.″

The authority said it was the first time a company had been found to breach a so-called initial enforcement order by consciously refusing to report required information. Such orders are standard practice at the start of an investigation into a completed merger and are meant to prevent companies from further integrating while the probe takes place.

The company was fined 50 million pounds for breaching the order, and another 500,000 pounds for changing its chief compliance officer twice without consent.

“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,” Joel Bamford, senior director of mergers at the CMA said in a statement. “This should serve as a warning to any company that thinks it is above the law.”

Facebook said it would review the decision and consider its options.

“We strongly disagree with the CMA’s unfair decision to punish Facebook for a best effort compliance approach, which the CMA itself ultimately approved,” the media giant said.

The authority launched an investigation in June last year into the takeover of the GIF-sharing platform amid worries about a “substantial lessening of competition.″

/zigman2/quotes/205064656/composite
US : U.S.: Nasdaq
$ 322.81
+4.94 +1.55%
Volume: 18.79M
Dec. 7, 2021 4:00p
P/E Ratio
23.05
Dividend Yield
N/A
Market Cap
$884.24 billion
Rev. per Employee
$1.47M
loading...

Get news alerts on Meta Platforms Inc. — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Economy & Politics

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.