Britain’s competition regulator has fined Facebook GBP 50.5 million (about Rs 520 crore) for violating an order imposed by the US social media giant during its investigation into the purchase of GIF platform Giphy, the agency said.
The Competition and Markets Authority (CMA) said: Facebook had intentionally failed to comply with his order, and the fine served as a reminder that no company was above the law.
Facebook has come under fire from regulators and lawmakers regarding its business practices.
It said it completely disagrees with CMA.
Regulator said Facebook failed to provide full updates about compliance with requirements to continue competing Giphy and did not integrate its operations with Giphy while it was under investigation.
Despite several warnings, Facebook had not provided the necessary information, the CMA said, and it considers its failure to comply with intentionality.
Joel Bamford, senior director of mergers, said, “We warned Facebook that refusing to provide us with important information was a violation of the order, but even after losing appeals in two separate courts, Facebook has defied its legal obligations.” continued.” CMA.
“This should serve as a warning to any company that thinks it is above the law.”
Bamford’s words on Tuesday are similar to those of US Solicitor of Labor Seema Nanda after Facebook agreed to pay up to $14.25 million (about Rs 105 crore) to settle civil claims over compliance with recruitment rules.
A media report on Wednesday said that Facebook planning to rebrand, a change that would likely see a parent company overseeing its brand.
Responding to the CMA’s penalty, Facebook said: “We strongly disagree with the CMA’s unreasonable decision to penalize Facebook for its best effort compliance approach, which was ultimately approved by the CMA.
“We will review the CMA’s decision and consider our options.”
© Thomson Reuters 2021