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LONDON (AP) – UK’s antitrust watchdog blocked Facebookpurchase Gypsy and ordered the social network to sell the GIF sharing platform, saying the deal hurt social media users and advertisers by stifling competition for animated images.

The Competition and Markets Authority said on Tuesday that the deal would allow. Facebook “increasing the already important market power” by blocking or limiting the access of other platforms Gypsy GIFs and traffic Facebook– owned sites. He previously stated that there is only one major GIF provider, GoogleTenor.

The regulator was also concerned that the deal would eliminate potential competition in the UK’s £7 billion ($9.3 billion) display advertising market. Facebook control half.

This is the first time the watchdog has attempted to settle a tech deal, marking an escalation by regulators looking to tame the digital giants.

Facebook, renamed Meta, said he did not agree with the decision and is considering all his options, including appeal.

“Both consumers and Gypsy We are in a better position with the support of our infrastructure, talent and resources.” “Together, Meta and Gypsy will develop Gypsy‘s product for millions of people, businesses, developers and API partners who use it in the UK and around the world. Gypsy it gives everyone more choices every day.”

After consulting with other businesses and groups and considering proposed alternative solutions Facebook, the watchdog “competition concerns only Facebook sales Gypsy are fully owned by an approved purchaser.”

Stuart McIntosh, head of the Observer’s independent group that conducted the investigation, said the deal “eliminates a potential competitor in the display advertising market”.

“Without action, it will also allow Facebook To further increase significant market power in social media by controlling competitors’ reach Gypsy GIFs,” he said. Facebook to sell GypsyWe protect millions of social media users and encourage competition and innovation in digital advertising.”

based in New York GypsyA library of short looping videos or GIFs is a popular tool for internet users who send messages or post on social media.

The two sides waged a relentless battle for the deal, reportedly worth $400 million.

With a temporary decision taken in August, the Competition and Market Authority said: Facebook have to sell Gypsy. The social giant responded with a sharply worded letter, saying the interim decision contained “fundamental errors”.

Last month, watchdog fined Facebook £50.5 million ($67.4 million) for failing to provide the necessary information for the investigation, saying the company’s non-compliance was deliberate.

The guard said before the deal, Gypsy This was considering expanding its advertising services to other countries, including the UK, which would add a new player to the market and encourage more innovation from social media sites and advertisers, but Facebook terminated Gypsy‘ he said, after announcing his advertising partnership deal.

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For full technical coverage of the AP, visit https://apnews.com/apf-technology.

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Follow Kelvin Chan at https://www.twitter.com/chanman.