Giphy is an American online search engine founded in February 2013 by Alex Chung and Jace Cooke. It’s a platform that lets users look for short looping videos with no sound and share them with their friends. In May of 2020, Facebook purchased Giphy for $300 million or $400 million.
Giphy is said to be Facebook’s biggest acquisition to date. According to reports, the Competition and Market Authority (CMA) of the United Kingdom accuses Facebook of monopolising the supply of GIFs through its acquisition of Giphy. As a result of this deal, Facebook was hit with two major antitrust lawsuits from the US last year, and this isn’t the first time it has faced such a situation.
Giphy is a search engine that claims to be the world’s second-largest search engine, supplying around 10 billion GIFs to millions of people every day. Giphy has also attempted to compete with major technology companies like Google. Giphy’s founder Alex Chung told New Atlas in an interview that the company’s entire goal was to see if they could revolutionise the search engine market, not in terms of information, but in terms of how people express their emotions and define their culture, which is through GIFs.
When the deal was made and other networks were concerned about their GIF supply, social media platforms such as Signal and Telegram said that if such a situation arose, they would implement other preventive measures to ensure that their services were not negatively affected by the deal.
The CMA has given Facebook a deadline to respond, and if it does not, the CMA will carry a full investigation into the alleged monopoly.