Britain fines Facebook $70 million for breaching order in Giphy deal


FILE PHOTO: People are silhouetted as they pose with laptops in front of a screen projected with a Facebook logo, in this picture illustration taken in Zenica October 29, 2014. REUTERS/Dado Ruvic/File Photo

LONDON (Reuters) -Britain's competition regulator has fined Facebook 50.5 million pounds ($69.6 million) for breaching an order imposed during its investigation into the U.S. social media giant's purchase of GIF platform Giphy, the agency said on Wednesday.

The Competition and Markets Authority (CMA) said Facebook had deliberately failed to comply with its order, and the penalty served as a warning that no company was above the law.

Facebook has increasingly come under fire from regulators and lawmakers about its business practices.

It said it strongly disagreed with the CMA.

The regulator said Facebook had failed to provide full updates about its compliance with requirements to continue to compete with Giphy and not integrate its operations with Giphy's while its investigation was ongoing.

Facebook had not provided the required information, despite multiple warnings, the CMA said, and it considered its failure to comply deliberate.

"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," said Joel Bamford, senior director of mergers at the CMA.

"This should serve as a warning to any company that thinks it is above the law."

Bamford's words echo those of U.S. Solicitor of Labor Seema Nanda on Tuesday after Facebook agreed to pay up to $14.25 million to settle civil claims over its adherence to recruitment rules.

A media report on Wednesday said Facebook was planning to rebrand, a change that would likely see a parent company overseeing its brands.

Responding to the CMA fine, Facebook said: "We strongly disagree with the CMA's unfair decision to punish Facebook for a best effort compliance approach, which the CMA itself ultimately approved.

"We will review the CMA's decision and consider our options."

($1 = 0.7258 pounds)

(Reporting by Sachin Ravikumar in Bengaluru and Paul Sandle in London; editing by Anil D'Silva and Jason Neely)

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

   

Next In Tech News

US scientists create world’s first-ever living robots�–�and they’re now able to self-replicate
AP source: NSO Group spyware used to hack US State Department employees
Yusaku Maezawa: irreverent billionaire fascinated by space
Taiwan Nov exports seen surging for 17th month in a row: Reuters poll
New ‘Halo’ game debuts as Xbox turns 20
Third of upskirting offenders behind ‘other serious sexual crimes’
‘Metaverse’ hype fuels booming digital property market
Sign up to sites without your real email address using Firefox Relay
Getting connected: The smart devices looking out for your health
Alibaba appoints Toby Xu as new chief financial officer

Others Also Read


Vouchers