The UK competition watchdog has ordered Facebook owner Meta (FB.O) to sell popular animated photos site Giphy, in what is Britain’s first such action against so-called Big Tech in its efforts to strengthen regulation of the sector.

The Competition and Markets Authority (CMA) stated that the acquisition of Giphy by Facebook last year will limit competition between social media platforms and display advertising.

Facebook, which was recently rebranded as Meta Platforms has four weeks to appeal the CMA’s decision. Stuart McIntosh, chair of the independent investigation on Facebook-Giphy said “The tie-up between Facebook and Giphy has already removed a potential challenger in the display advertising market,”

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“By requiring Facebook to sell Giphy, we are protecting millions of social media users and promoting competition and innovation in digital advertising,” Facebook said it disagreed with the decision.

A Meta spokesperson said in a statement “We are reviewing the decision and considering all options, including appeal,”

After saying in August that it might need Facebook to sell Giphy, the CMA fined a company record $70 million in October for breaching an order imposed during its investigation into the acquisition.

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