DOCSLIB.ORG

Provisional Findings Report

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Provisional Findings Report Completed acquisition by Facebook, Inc of Giphy, Inc. Provisional Findings report Notified: 12 August 2021 © Crown copyright 2021 You may reuse this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government- licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected]. The Competition and Markets Authority has excluded from this published version of the Provisional Findings report information which the inquiry group considers should be excluded having regard to the three considerations set out in section 244 of the Enterprise Act 2002 (specified information: considerations relevant to disclosure). The omissions are indicated by []. [Some numbers have been replaced by a range. These are shown in square brackets.] [Non-sensitive wording is also indicated in square brackets.] Contents Page 1. The reference ..................................................................................................... 16 2. The Parties, Merger and Rationale ..................................................................... 17 The Parties ......................................................................................................... 17 The Merger ......................................................................................................... 22 The rationale for the Merger ............................................................................... 23 3. Jurisdiction .......................................................................................................... 28 Introduction ......................................................................................................... 28 Two or more enterprises ..................................................................................... 28 ‘Ceased to be distinct’ ......................................................................................... 30 At a time or in circumstances falling within section 24 ........................................ 31 Turnover test ....................................................................................................... 31 Share of supply test ............................................................................................ 31 4. Industry Background ........................................................................................... 47 What are GIFs?................................................................................................... 47 Overview and analysis of services related to GIF supply .................................... 48 Characteristics and trends in GIF supply and usage ........................................... 56 Key players ......................................................................................................... 63 5. Market Definition and Market Power ................................................................... 65 Introduction and framework ................................................................................ 65 The supply of searchable GIF libraries ............................................................... 67 Social media ....................................................................................................... 86 Display advertising .............................................................................................. 96 6. Counterfactual................................................................................................... 107 Introduction ....................................................................................................... 107 The CMA’s framework for assessment of the counterfactual ............................ 107 The Parties’ views on the counterfactual .......................................................... 108 Our assessment of the appropriate counterfactual ........................................... 110 Provisional conclusion on the counterfactual .................................................... 136 7. Horizontal Effects .............................................................................................. 138 Introduction ....................................................................................................... 138 Framework for analysis ..................................................................................... 140 Importance to dynamic competition of GIPHY’s efforts to innovate and expand ......................................................................................................................... 145 Likelihood of expansion and UK entry by GIPHY .............................................. 149 Expected closeness of competition between Paid Alignment and Facebook’s display advertising services ............................................................................. 168 Assessment of Facebook’s likely response to potential competition absent the Merger ............................................................................................................. 171 Loss of dynamic competition arising from the Merger ....................................... 180 Provisional conclusion on horizontal unilateral effects ...................................... 182 8. Vertical Effects .................................................................................................. 184 Introduction ....................................................................................................... 184 Ability to foreclose ............................................................................................. 185 Incentive to foreclose ........................................................................................ 209 Effect of foreclosure on competition .................................................................. 217 Provisional conclusion on input foreclosure ...................................................... 220 9. Countervailing Factors ...................................................................................... 223 Entry and expansion ......................................................................................... 223 1 Efficiencies ........................................................................................................ 240 10. Provisional decision .......................................................................................... 241 Appendices A: Reference B: Conduct of Inquiry C: Third Party Summary D: Market shares methodology E: GIPHY’s Timeline F: GIPHY’s Paid Alignment Model G: GIPHY’s data Glossary 2 Summary Overview of our findings 1. The Competition and Markets Authority (CMA) has provisionally found that the merger between Facebook, Inc. (Facebook) and GIPHY, Inc. (GIPHY – together, the Parties) (the Merger) has resulted or would result in a substantial lessening of competition (SLC) in social media and display advertising, harming social media users and businesses in the UK. 2. The report and its appendices, which will be published shortly after this summary, constitute the CMA’s Provisional Findings. We invite any interested parties to make representations on these provisional findings by no later than 2 September 2021. Interested parties should refer to the notice of provisional findings for details of how to do this. 3. Facebook completed the acquisition of GIPHY on 15 May 2020, but has been required to hold the businesses separate since 9 June 2020, when the CMA imposed an Initial Enforcement Order. In our notice of possible remedies published alongside our Provisional Findings, we have set out our initial view that the only effective way to address the competition issues that we have identified is for Facebook to sell GIPHY, in its entirety, to a suitable buyer. We also invite submissions from interested parties on these initial views by 25 August 2021. Who are the businesses and what services do they provide? Facebook is by far the largest provider of social media and messaging services in the UK 4. The Facebook group offers various online products and services to customers in the UK. This includes popular social media and messaging platforms such as the Facebook app, Instagram, Messenger and WhatsApp. Facebook is by far the largest provider of social media and messaging services in the UK, by number of users. Indeed over 80% of UK internet users access at least one Facebook site per month. Such platforms are generally provided to users for no monetary cost. However, Facebook’s platforms (alongside many other social media platforms) are multi-sided in nature, meaning that they supply services to two or more distinct, but related, customer groups. In Facebook’s case, in addition to serving users, who use Facebook’s social media and messaging platforms to connect with their friends and family, it also serves advertisers, who use Facebook’s platforms to market their products to users, and in return, pay Facebook a fee. 3 5. Multi-sided platforms such as Facebook are often characterised by network effects, in that the value of the product for users on one side of the platform depends on the number of users either on the same side of the platform, or on the other side. For example, in Facebook’s case, having a large user-base on its social media platform makes it more attractive to advertisers. Facebook’s business model, and the business model of other social media platforms, therefore relies on attracting
Load more

Recommended publications
  • The GIF That Keeps on Giving: Assignment Design with Looped Animations
    The GIF that Keeps on Giving: Assignment Design with Looped Animations http://bit.ly/gifgive While an older format (created in 1987), GIFs (Graphics Interchange Format) have experienced a resurgence in popularity and use in the past decade. Due to the recent proliferation of digital platforms that host GIFs, the format as a means of communication and as an act of composition has become naturalized and therefore invisible. The rise in their popularity makes GIFs important for scholars of digital literacy and composition to understand and utilize in their teaching and research. We argue that their playful nature, ease of use, and delivery opens GIFs up for new avenues of research, inquiry, and analysis. As such, GIFs can be meaningfully incorporated into the composition classroom as critical components of assignment design and the feedback process. In this mini-workshop, we will introduce participants to pre-existing examples of GIF assignments we have used in courses, discuss avenues for pedagogical research, guide participants in the creation of new GIFs, and facilitate participants’ efforts to design assignments that use GIFs. Workshop Agenda http://bit.ly/gifgive Introduction ● Facilitators Icebreaker (5-10): Getting to Know You ​ ​ ● Participants Overview (10): The GIF That Keeps on Giving (http://bit.ly/gifgivepres) ​ ​ ​ ​ ​ ● History (Matt) ● Integration into Current Communication (Jamie) ● Affective Nature of GIFs (Megan) ● Avenues of Inquiry ● As Digital Composition (Matt) ● Issues of Identity (Matt) ● Hierarchy/ Canon: r/highqualitygifs
    [Show full text]
  • Onavo Protect for Mac
    Onavo Protect For Mac 1 / 5 Onavo Protect For Mac 2 / 5 3 / 5 As part of this procedure, Onavo gets and analyzes facts about your cellular knowledge and application use. 1. onavo protect 2. onavo protect for pc 3. onavo protect vpn for iphone It is the Facebook owned Onavo Protect iOS app that is linked to in the Facebook iOS app settings under the “Protect” label.. After a paragraph about the protection that Onavo provides and some bullet points on how the service works, the company states that it is essentially spyware, which is on both the iOS App Store and the web.. Pinnacle stellt video capture for mac Free pinnacle video capture for mac free download - Adobe Presenter Video Express, Pinnacle Video Spin, 4Media Video Frame Capture for Mac, and many more programs. onavo protect onavo protect, onavo protect vpn for iphone, onavo protect ios, onavo protect vpn security, onavo protect for pc, onavo protect vpn download, onavo protect android, onavo protect for iphone, onavo protect apk for iphone, onavo protect uptodown Gratis Notifikasi Tidak Muncul Di Android “> Onavo Protect – VPN Security aplication For PC Windows 10/8/7/Xp/Vista & MAC To be capable to check out Onavo Shield – VPN Security aplication on your hard push or netbook machine owning windows seven eight ten and Macbook system you ought to start working with things like the actual lesson How to download Onavo Protect – VPN Security for pc windows 10 7 8 Mac on blustack? • 1st point you should have bluestack on your laptop.. Alternatives to Onavo Protect for Windows, Mac, Linux, Android, iPhone and more.
    [Show full text]
  • How Apps on Android Share Data with Facebook (Even If You Don’T Have a Facebook Account)
    How Apps on Android Share Data with Facebook (even if you don’t have a Facebook account) December 2018 How Apps on Android Share Data with Facebook Privacy International is a UK-registered charity (1147471) that promotes the right to privacy at an international level. It is solely responsible for the research and investigation underpinning its reports. 2 How Apps on Android Share Data with Facebook Executive Summary Previous research has shown how 42.55 percent of free apps on the Google Play store could share data with Facebook, making Facebook the second most prevalent third-party tracker after Google’s parent company Alphabet.1 In this report, Privacy International illustrates what this data sharing looks like in practice, particularly for people who do not have a Facebook account. This question of whether Facebook gathers information about users who are not signed in or do not have an account was raised in the aftermath of the Cambridge Analytica scandal by lawmakers in hearings in the United States and in Europe.2 Discussions, as well as previous fines by Data Protection Authorities about the tracking of non-users, however, often focus on the tracking that happens on websites.3 Much less is known about the data that the company receives from apps. For these reasons, in this report we raise questions about transparency and use of app data that we consider timely and important. Facebook routinely tracks users, non-users and logged-out users outside its platform through Facebook Business Tools. App developers share data with Facebook through the Facebook Software Development Kit (SDK), a set of software development tools that help developers build apps for a specific operating system.
    [Show full text]
  • “How to Make a GIF” Guideline
    1 Sigrid Nagele Otelo eGen, Linz Austria HOW TO MAKE GIFs Creating dynamic pictures for the web, social media and presentations 2 What is a GIF? • „Graphics Interchange Format“ • chains together multiple pictures into a single animated image • GIFs have exploded in popularity in recent years, so they are very useful to reach a lot of people, especially on social media 3 How to make a GIF… …using the platform GIPHY: Giphy is super quick and easy to use. It will take you less than 5 minutes to create a GIF, it offers different ways to do it and you don‘t have to register. • Go to: www.giphy.com • Click „create“ 4 How to make a GIF… • Choose the material you want to make a GIF from • 3 Options: 5 How to make a GIF… • ...from pictures/photos on my computer: • Select the pics you want to have in the GIF loop from your files: 6 How to make a GIF… • Adjust the speed: • Options for text: 7 How to make a GIF… • Add tags to your GIF!!! like „bioeconomy“, „innovation“, „bloom“, „recycling“ • Upload! 8 How to make a GIF… • Now your GIF is ready to be shared or to download Here you find the link to the GIF itself • download the GIF: Different format versions of right-click on the image > save image as… the GIF are available. 9 How to make a GIF… • Make a GIF from online images/videos: (make sure you do not infringe a copyright!!!) • Add more images for a dynamic GIF or add a text animation Upload! Add more images 10 How to make a GIF… GIFs are nice to be shared on social media channels as Facebook, Twitter or Instagram and to be used in presentations.
    [Show full text]
  • Facebook's Products, Services & Companies
    FACEBOOK'S PRODUCTS, SERVICES & COMPANIES Products and Services The following products and services are explicitly connected to, or part of, your Facebook account, and fall under Facebook’s "Data Policy". Profile Personal profile page on Facebook. News Feed Personal news page on Facebook where stories from friends, Pages, groups and events are updated. Messenger Facebook’s mobile messaging app. roups !ool for creating groups to share photos, files and events. "vents !ool for creating and inviting people to events. #ideo !ool for storing and sharing videos on Facebook. Photos !ool for storing and sharing photos on Facebook. Search Search engine for searching within Facebook. Pages Public profile pages for e.g. organisations, brands, celebrities. Free $asics %pp and web platform that gives access to a package of internet services for free, in places where internet access is limited. &see Internet.org(. Facebook )ite % version of Facebook that uses less data, for situations where there is lower bandwidth. Mobile %pp Facebook’s mobile app. *ompanies The following companies are owned by Facebook but many have individual privacy policies and terms. !owever, in many case information is shared with Facebook. Pa+ments !ool that can be used to transfer money to others via Facebook Messenger. %tlas Facebook’s marketing and advertising tool. Moments %pp that uses facial recognition to collect photos based on who is in them. 'nstagram %pp for taking, editing and sharing photos. ,navo %ndroid app to save, measure and protect mobile data Moves Mobile app for monitoring your movements over the da+. ,culus #irtual realit+ equipment . research. )ive/ail Monetisation platform for video publishers.
    [Show full text]
  • October 2019
    SOCIAL RECAP: October 2019 October October October October Facebook changes how it calculates Facebook is testing ads in the group tab Instagram adds Product Launch Instagram introduces IGTV Series organic impressions on mobile Notifications The tool enables creators to segment their Users can sign up for an alert 15 minutes Business pages are expected to see a As focus continues to shift to groups, a videos into dedicated collections, handful of brands have been able to before the product drops within Instagram decrease in organic impressions, as encouraging return viewing. Facebook adjusts the time-frame in which it advertise within the feed under the group Stories, allowing them to purchase limited- tab on mobile devices. release items before they sell out. calculates repeat impressions. October October October October Facebook rolls out stories that drive Facebook provides ‘suggested time’ for Instagram adds close friends messaging Instagram adds branded content tags for directly to Messenger scheduled posts through standalone app IGTV Users can swipe up to chat directly with For those scheduling content directly on Threads allows users to automatically share Similar to in-feed “paid partnership with,” businesses through Messenger. Facebook, the company is testing a videos and status updates with a small businesses and creators can clearly identify suggested time option to reach audiences group of friends. branded content. when they’re most active on the platform. October September October October Facebook adds Search Results to Facebook tests new in-app shopping Instagram adds Dark Mode on iOS and Instagram Stories adds GIFs in create automatic ad placements options Android mode Ads will appear in general search and A dynamic ad would allow users to Dark mode turns the background of In a partnership with GIPHY, users can now Marketplace search based on selected purchase directly from the newsfeed, while Instagram black, making it easier on your use animated images as story backgrounds.
    [Show full text]
  • Full Text Decision
    Completed acquisition by Facebook, Inc. of GIPHY, Inc. Decision on relevant merger situation and substantial lessening of competition ME/6891-20 The CMA’s decision on reference under section 22(1) of the Enterprise Act 2002 given on 25 March 2021. Full text of the decision published on 5 May 2021. Please note that [] indicates figures or text which have been deleted or replaced in ranges at the request of the parties or third parties for reasons of commercial confidentiality. SUMMARY Introduction 1. On 15 May 2020, Facebook, Inc. (Facebook) acquired GIPHY, Inc. (GIPHY) (the Merger). Facebook and GIPHY are together referred to as the Parties, or for statements referring to the future, the Merged Entity. 2. The Facebook group offers various online products and services to customers in the UK, including the Facebook app, Instagram, Messenger, WhatsApp, Oculus, Portal and Workplace. 3. GIPHY is also active in the UK, with an online database and search engine that allows users to search and share GIFs and GIF stickers. A GIF is a digital file that displays a short, looping, soundless video, while a GIF sticker displays an animated image comprised of a transparent (or semi-transparent) background over which images or text are placed. Unless otherwise specified, the term ‘GIFs’ refers to both video GIFs and GIF stickers. GIPHY offers its GIFs and GIF stickers both on its own website and app, and via Application Programming Interfaces (APIs) that allow third party apps (eg Snapchat, TikTok or Instagram) to integrate GIPHY’s GIF and GIF sticker databases. GIPHY’s products are offered free of charge to users and companies using its 1 APIs globally.
    [Show full text]
  • Cancel Follow Request Instagram Notification
    Cancel Follow Request Instagram Notification Underhung and healable Wally crystallise her burgonet outbids or vomit zealously. Blond and attempted Torrey sticky her Chandra candles or bombinates resolutely. Gasiform and oviparous Henry still asseverating his accusative aborning. How do our cookie setting your destination in other on updates for conducting interviews from. This involves using it! Find or you need to? Anything else has notifications when you previously mentioned above. Keep the instagram feed or dms in the instagram has been rolling out for different domain and cancel follow request instagram notification you an. Choose who is a bit of phrases used by providing wellness tips that message with pornography. Attach files in the info with the platform where reels, would like whatsapp, go back at the problem will not prevent them in the few. When they show the messenger threads can tag your devices, your profile of. And cancel this post from sending the only members get to tell if they cancel follow request instagram notification settings. Once or cancel follow request instagram notification? In that expire, you browse with caregivers and cancel follow request instagram notification. This wikihow teaches you disable notifications have a person. Instagram algorithms monitor your friendship changes is perfect area for this is too big library with someone. Like your notification settings for good if a survey or cancel your. Commerce returns by spam follow requests will have been fixed, locations where engagement is a time by suggesting old photos easier. Will happen if not recommend that person happens if necessary. God knows when you can include this by checking your email from sites can remove false claims and cancel follow request instagram notification? You can decline a beautiful contents.
    [Show full text]
  • How Do I Download Gifs from Giphy What Does a GIF View Mean on GIPHY? a View Is Counted Every Time a GIF Has Been Served Through GIPHY’S Services Or Technology
    how do i download gifs from giphy What Does A GIF View Mean on GIPHY? A view is counted every time a GIF has been served through GIPHY’s services or technology. A single view is counted when a GIF is served, regardless of how many times it loops. A GIF view on GIPHY is a sign of relevance, share-ability, and popularity. GIF views begin counting as soon as you upload, but there may be a short delay until they appear on your GIF. You can find GIF views in the lower right-hand corner of the GIF detail page, directly below the Share Icons. In addition, official partners and artists have access to a Dashboard where they can see cumulative views on their account and download a full report. This Dashboard is located in the dropdown under your username, in the upper right-hand corner on desktop. For now, only official Artist or Brand GIFs and their corresponding Channels will display view counts. Artists and Brands on GIPHY can turn off user-facing view counts on their GIFs and Channels by visiting their account Settings and toggling the "Display GIF View Counts" option to "Private." To learn more about special features for Brands and Artists, visit our sections GIPHY for Brands and GIPHY for Artists. And remember, the more GIFs you make and share on GIPHY, the more views you’ll get! Get Your Stickers and GIFs Into Instagram Stories. GIPHY can help brands and artists get their GIPHY GIFs and stickers into Instagram Stories. If you don’t already have an account, you can apply for a Brand or Artist channel here .
    [Show full text]
  • Paper #3: Facebook
    Yaletap University Thurman Arnold Project Digital Platform Theories of Harm Paper Series: 3 The Section 2 Case Against Facebook May 2020 Jackson Busch Michael Enseki-Frank Natalie Giotta Joe Linfield Przemyslaw Palka Emily Wang Introduction Facebook is currently facing four separate antitrust investigations by the DOJ, the FTC, a group of state attorneys general, and the House Judiciary Committee.1 Should one or more of these entities bring a monopolization claim against Facebook, they will need to provide robust evidence that Facebook possesses market power in a relevant antitrust market and that Facebook has acted anticompetitively in acquiring or maintaining that power. In this paper we show that, based solely on publicly available data, enforcement agencies have sufficient grounds to bring a strong case against Facebook under Section 2 of the Sherman Act. To show that Facebook has violated Section 2, the Supreme Court has laid out a two-part test. Plaintiffs must show “(1) the possession of monopoly power in the relevant market and (2) the willful acquisition or maintenance of that power as distinguished from growth or development as a consequence of a superior product, business acumen, or historic accident.”2 This report follows the Grinnell framework in organizing the Section 2 case against Facebook. Part I shows that Facebook possesses monopoly power in a relevant antitrust market. Because Facebook is a two-sided non-transactional market, we analyze the social media market and the digital advertising market separately. We discuss why each side of the platform constitutes a relevant antitrust market and provide “indirect evidence” that Facebook has market power by showing high market shares and barriers to entry.
    [Show full text]
  • 9 Out-Of-The-Box Strategies for Growing Your Instagram
    9 out-of-the-box strategies for growing your instagraM www.plannthat.com checklist HAVE YOU TRIED ALL OF THE STRATEGIES? tick them off as you go! Switch up your geotags Join a giveaway Create an IGTV series Amp up your Instagram SEO Share your content on Pinterest Diversify your content type Create a branded hashtag Get your gif on Cross-post on TikTok www.plannthat.com INTRODUCTION What to DO When you feel like you’ve tried EvErything So, you feel like you’re doing alllll the right things on Instagram. You’re consistently posting high-quality content. You’re engaging with others like crazy. You respond to comments religiously. Heck, you’ve even hopped on the bandwagon and started creating video content! And yet, that pesky follower number just won’t budge! Or, maybe it does occasionally jump up by 100, followers, only to leave you with a feeling of crushing disappointment when it quickly drops back down (damn those bot accounts!) Yep, it can be frustrating when you just can’t seem to leap over that hurdle you’ve been striving for — whether that’s 1000, 10,000 or 100,000 followers! It can sometimes feel like you’re just treading water — especially when you’re putting loads of energy into it. The good news is, even if feels like you know every trick in the book, you probably haven’t tried everything. There are likely still a few little-known growth strategies you didn’t even know you had up your sleeve! Some are a little quirky, maybe even strange! But, they might be just the thing you need to break through your plateau and skyrocket your Instagram followers.
    [Show full text]
  • September 9, 2020 Chairman Jerrold Nadler Committee on the Judiciary
    September 9, 2020 Chairman Jerrold Nadler Committee on the Judiciary Subcommittee on Antitrust, Commercial, and Administrative Law U.S. House of Representatives 2138 Rayburn House Office Building Washington, DC 20515 ATTN: Joseph Van Wye Dear Chairman Nadler, Ranking Member Jordan, Subcommittee Chairman Cicilline, Subcommittee Ranking Member Sensenbrenner, and Members of the Subcommittee, Thank you for your questions for the record from the Subcommittee on Antitrust, Commercial, and Administrative Law’s July 29, 2020 virtual hearing entitled “Online Platforms and Market Power, Part 6: Examining the Dominance of Amazon, Apple, Facebook, and Google.” Per your request, attached are the answers for the record to your questions. While not a question included in the questions for the record, we would like to follow up on Mark Zuckerberg’s exchange with Congresswoman McBath regarding how Facebook uses “cookies” to make clear for the record that Facebook has honored the commitments in its privacy policies. Mark correctly testified that Facebook has used cookies for a variety of purposes, including those he enumerated in his testimony. Those purposes have evolved as our services have evolved, and include helping to serve relevant ads. Our privacy policies have always been transparent about the way we use cookies. Sincerely, Facebook, Inc. Questions from Chairman Cicilline 1. Please confirm whether Giphy enables Facebook to track the following types of data: a. The number of users accessing Giphy images on any non-Facebook app; b. Individual Giphy images used by individual users on non-Facebook apps; c. An individual user’s keystrokes searched using Giphy tools on non-Facebook apps; and d.
    [Show full text]