Mashable: Meta has stated that it would not file a further appeal of the CMA's ruling.

Meta conceded on Tuesday to the United Kingdom's demand that it sell the animated photo platform Giphy, and instead will undo its acquisition of the New York City-based company.

This Monday, Britain's antitrust watchdog, the Competition and Markets Authority (CMA), upheld its decision from last year that Meta's purchase of Giphy would hurt competition and new ideas in the market.

Meta has stated that it would not file a further appeal of the CMA's ruling.

"We are disappointed by the CMA’s decision but accept today’s ruling as the final word on the matter," a Meta spokesperson told FOX Business in a statement. Regarding the GIPHY sale, "we will cooperate closely with the CMA."

The spokesman for Meta also said that the company "will continue to assess options—including through acquisition—to provide innovation and choice to more people in the UK and throughout the world."

Meta announced in May 2020 that it would be acquiring Giphy, the top supplier of animated gifs to social networks including Snapchat, TikTok, and Twitter for $400m. Still, in November 2021, the CMA took action to stop the merger because it was worried that Meta, which was then called Facebook, would "increase its already huge market influence" with the purchase.

The authority said in November that the only option to overcome competition issues was to dispose of Giphy. The Competition and Markets Authority (CMA) is worried that a merger would make the £7 billion UK display advertising market less competitive. Facebook controls about half of this market.

Meta filed an appeal, claiming that its acquisition of Giphy will enhance Giphy's offerings and provide users with "more options."

It is "particularly concerning," according to the watchdog group, as Facebook cut off Giphy's advertising services just as the firm was getting ready to expand into new markets.

This transaction would drastically reduce competition in the two markets. "It has already taken away a possible competitor in the UK display ad market," said Stuart McIntosh, head of the independent inquiry group that did the remittal investigation. He also said that it would allow Meta to increase its already strong market position in social media.

However, concerns were expressed by American business organizations over the CMA's intervention because of the agreement between Meta and Giphy, both of which are based in the United States.

Last year, in response to CMA's decision, the president and CEO of the Small Business & Entrepreneurship Council, Karen Kerrigan, said, "This foreign move to stop two U.S.-based firms from buying each other is strange and alarming."

Meta and the CMA have been at odds throughout the probe. Meta was fined £50.5 million in October for "deliberately" withholding information following an order to maintain Giphy's company independent from Facebook throughout the probe.