Facebook has been told to pay £139,667 in legal costs to the UK markets watchdog after losing a court battle over its acquisition of the image firm Giphy.
The social media giant was ordered to pay the sum by the recorder, Hodge Malek, following a tense legal row with the Competition and Markets Authority.
The CMA won out against Facebook’s bid to overturn an order imposed by the watchdog in June.
Battle: Facebook was ordered to pay the sum by the recorder, Hodge Malek, following a tense legal row with the Competition and Markets Authority
The edict demanded Facebook freeze a string of business activities while officials investigate its $400million (£300million) takeover of Giphy. The investigation will determine whether the deal could do irreversible damage to any of Giphy’s rivals.
Though both Facebook and Giphy are American companies, the UK watchdog stepped in as British consumers are affected.
Facebook had complained that it was unable to ‘certify compliance’ with the order. It now faces a separate investigation for a possible breach of the order, which could see the CMA impose a fine of up to 5 per cent of Facebook’s turnover.
The spat between Facebook and the CMA comes as Britain prepares a big crackdown on the tech giants. The watchdog has said that it will take action against any takeovers that harm UK consumers – even if they take place overseas.
It has also pledged to stop the likes of Google and Facebook stifling competition by snapping up early-stage firms.
CMA research has revealed that 60 per cent of firms snapped up by the tech giants over the past decade were four years old or less.
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