The UK’s Competition and Markets Authority (CMA) is predicted to reverse Facebook mother or father firm Meta’s buy of Giphy within the coming days, in keeping with the Financial Times. If so, it will mark the primary time that the nation’s competitors regulator has unwound a significant tech acquisition.

Meta (or Facebook, on the time) introduced in May 2020 that it purchased the GIF platform with the purpose of rolling it into Instagram. Reports pegged the worth of the deal at $400 million.

The CMA raised considerations in regards to the acquisition, nevertheless. It opened an investigation into the deal the next month. The regulator dominated in August that the deal might forestall rivals reminiscent of TikTok and Snapchat from accessing Giphy’s library of GIFs. It additionally mentioned the deal might take away a possible competitor to Meta within the UK promoting sector. Meta ended Giphy’s paid advert partnerships, which the CMA mentioned halted the corporate’s advert enlargement, together with to different international locations.

The watchdog advised Meta may very well be compelled to promote the service. A CMA spokesperson informed Engadget that it hasn’t printed it is last determination, however it has until December 1st to take action.

Meta has beforehand argued that as a result of Giphy would not have any operations within the UK, the CMA has no jurisdiction on this case. In addition, it claimed Giphy’s paid providers could not be classed as show promoting in keeping with the CMA’s market definition.

The challenge between Meta and the CMA grew extra contentious in October, when the authority fined the corporate nearly $70 million for breaking guidelines associated to the deal. The CMA mentioned it was the primary time it decided an organization breached one in every of its orders by “consciously refusing to report all the required information.”

Engadget has contacted Meta for remark.