Facebook to pay a hefty amount again to CMA for some regulation it broke regarding the GIPHY issue

The tech giant Meta once again is under hot water as it has been fined again by the U.K. Competition and Markets Authority for breaching enforcement guidelines.

In 2020, the tech giant purchased Giphy, but this purchase has been a hassle from the start for the tech giant because the U.K Competition and Markets Authority (CMA), fined the tech giant by $70 million in 2021 and passed the enforcement order to sell the newly-acquired platform.

The CMA concern over the purchase was that the bullet speed purchasing of the renowned apps by the tech giant will establish a monopoly and diminish the market competition.

According to a source, inside from the CMA, the second time the tech giant is fined due to the breach in the order given by the U.K authority. In light of this order and the regulations established, the tech giant was bound to alert the CMA in advance if they were to make any changes in the GIPHY platform and its associated workers.

However, Meta management failed to conduct on this order and got fined for the second time for 1.5 million pounds by the CMA. The reason behind this fine was that three main U.S based employees left the Giphy platform and the tech giant did not inform the CMA about it.

According to Joel Bamford, senior director at the CMA, who stated on the latest fine on the tech giant, that the tech firm was asked to update CMA about even the minor changes that occur, but the tech firm didn’t take it seriously and didn’t update them about such a big development.

Meta released a statement about this fine, which they are feeling highly disappointed over the decision made by CMA. They have to pay a fine of 2 million dollars. According to the tech firm, their employees left which was a massive drawback for them too; however they couldn’t do anything about it as per the policy. Regardless of this they still have to pay the fine now.

Moreover, this decision comes on an awful week for the Meta owner because the share price of META has dropped because of the fall down in daily active users. The result of 26% drops in the Facebook shares leaves a bad impact on the Meta Platforms. This made Mark Zuckerberg's wealth drop by 23 million pound in just one day.

The tech company saw the biggest fall down in its history. With this 23 million pound loss, Mark Zuckerberg bumped out from the top ten richest men of the world.

Read next: Metaverse’s thorny issue, how Facebook’s parent Meta is dealing with online harassment
Previous Post Next Post