Antitrust Group Demands Probe Of Giphy's Acquisition By Facebook, Wants Deal Blocked

Hours after Facebook announced that it has acquired animated image sharing website, Giphy, an antitrust group in United State have called for an investigation of the acquisition and request that the deal be blocked in order to prevent Facebook from becoming more powerful.

The antitrust group known as American Economic Liberties Project said the latest acquisition by Facebook shows how the U.S' Federal Trade Commission is allowing Facebook and Google take over online communications.

Facebook had acquired Giphy for about $400 million according to Axios, five years after Giphy reportedly turned down a Facebook offer, to continue integrating its animated images with several social media platforms. Google had also acquired GIF platform, Tenor, in 2018.

Both Facebook and Google have acquired these GIF platforms to integrate their functions into their own social media platforms. Before the acquisition, Giphy was already incorporated into Instagram and Facebook, with both accounting for 50% of GIF usage. Giphy is also used on Twitter, Snapchat and Tiktok as well.

Speaking on the acquisition, the Economic Liberties Executive Director Sarah Miller, said "The Facebook-Giphy merger is just the latest example of the Federal Trade Commission standing by while Facebook and Google centralize control over online communications,”

GIF platforms allow users to create animated images and share. With Google already in possession of its own GIF platform, Miller added that, “Now, Facebook is here to pick up the wreckage, and become even more powerful,” she said in Venture Beat report.

Meanwhile, Instagram’s vice president of product, Vishal Shah, in a blog post, stated that the acquisition wouldn't change anything, “People will still be able to upload GIFs; developers and API partners will continue to have the same access to Giphy’s APIs; and GIPHY’s creative community will still be able to create great content,”

Giphy also stated that “We will continue to make Giphy openly available to the wider ecosystem,”