The U.K. Competition and Market Authority weighed in on Facebook’s acquisition of Giphy Monday, expressing its concerns that the latter would not continue to be run as an independent entity.
The CMA said that on July 30, it directed Facebook, Facebook U.K., Giphy and Facebook subsidiary Tabby Acquisition Sub to appoint a formal hold separate manager for Giphy in order to ensure its independence.
Facebook had not responded to a request for comment at the time of this post.
The CMA noted in its order that members of Giphy’s senior management team left the company upon completion of the merger, and that key Giphy employees received restricted stock units in Facebook.
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