Friday 10 September 2021 4:50 pm

CMA extends deadline to probe Facebook's $400m Giphy deal

The Competition and Markets Authority (CMA) has today extended the deadline of its investigation into Facebook’s $400m acquisition of Giphy until December 2021, according to the CMA website.

The changes to the schedule of the regulator’s investigation follows criticism levelled at it by the social media giant Facebook after the CMA said it may force the £289m takeover of Giphy to be reversed.

Facebook retaliated by questioning if the CMA could enforce such an action.

In a letter published by the CMA this week, Facebook said: “The inability of the CMA to issue any order against GIPHY raises serious questions as to the enforceability of any divestment order and whether any such order could be effective.”

The deadline for the final report has been extended by eight weeks though the investigation could be wrapped up before the new date of 1 December.

It is not uncommon in cases, particularly those considered more complex, for investigations to be extended to allow for inquiries to thoroughly take account of responses to proposals.