UK watchdog fines Facebook $70 million over deliberately breaking rules
October 21, 2021, 1:44 am

UK watchdog fines Facebook $70 million over deliberately breaking rules

Facebook-Social Media-Blue platform/Pixabay

The We For News reported that as Facebook gets prepared to rebrand itself for the ‘Metaverse’ future, the UK anti-trust regulator on Wednesday fined the social network nearly $70 million for deliberately withholding information related to ongoing antitrust probe of its acquisition of popular GIF search engine Giphy.

The We For News said that the Competition and Markets Authority (CMA) also fined Facebook 500,000 pounds for changing its Chief Compliance Officer on two separate occasions without seeking consent first.

It mentioned that this is the first time a company has been found by the CMA to have breached an initial enforcement order (IEO) by consciously refusing to report all the required information.

The watchdog said in a statement: “Given the multiple warnings it gave Facebook, the CMA considers that Facebook’s failure to comply was deliberate. As a result, the CMA has issued a fine of 50 million pounds for this major breach, which fundamentally undermined its ability to prevent, monitor and put right any issues.”

It is standard practice to issue an IEO at the start of an investigation into a completed acquisition. This ensures that companies continue to compete with each other as they would have without the merger, and prevents the companies involved from integrating further while a merger investigation is ongoing.

The CMA imposed this type of order on Facebook in June 2020 in relation to its purchase of Giphy.

Facebook said last year that it was acquiring Giphy for nearly $400 million.

The social network was also criticised last year by the Competition Appeal Tribunal and Court of Appeal for its lack of cooperation with the CMA and “what might be regarded as a high-risk strategy” in relation to not complying with the IEO and not keeping the CMA updated as the IEO required.

Joel Bamford, Senior Director of Mergers at the CMA: “Companies are not required to seek CMA approval before they complete an acquisition but, if they decide to go ahead with a merger, we can stop the companies from integrating further if we think consumers might be affected and an investigation is needed."

“We warned Facebook that its refusal to provide us with important information was a breach of the order but, even after losing its appeal in two separate courts, Facebook continued to disregard its legal obligations,” he said, adding that this should serve as a warning to any company that thinks it is above the law.

The CMA’s investigation into Facebook’s merger with Giphy is ongoing.

The authority has provisionally found that Facebook’s takeover of Giphy will negatively impact competition between social media platforms.

Source: wefornews

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has sponsored the BuildHer CityHack 2025 Hackathon, a two-day event spearheaded by the College of Engineering and Technology at the Royal University for Women (RUW).
Aimed at secondary school students, the event brought together a distinguished group of academic professionals and technology experts to mentor and inspire young participants.
More than 100 high school students from across the Kingdom of Bahrain took part in the hackathon, which featured an intensive programme of training workshops and hands-on sessions. These activities were tailored to enhance participants’ critical thinking, collaborative problem-solving, and team-building capabilities, while also encouraging the development of practical and sustainable solutions to contemporary challenges using modern technological tools.
BENEFIT’s Chief Executive Mr. Abdulwahed AlJanahi, commented: “Our support for this educational hackathon reflects our long-term strategic vision to nurture the talents of emerging national youth and empower the next generation of accomplished female leaders in technology. By fostering creativity and innovation, we aim to contribute meaningfully to Bahrain’s comprehensive development goals and align with the aspirations outlined in the Kingdom’s Vision 2030—an ambition in which BENEFIT plays a central role.”
Professor Riyadh Yousif Hamzah, President of the Royal University for Women, commented: “This initiative reflects our commitment to advancing women in STEM fields. We're cultivating a generation of creative, solution-driven female leaders who will drive national development. Our partnership with BENEFIT exemplifies the powerful synergy between academia and private sector in supporting educational innovation.”
Hanan Abdulla Hasan, Senior Manager, PR & Communication at BENEFIT, said: “We are honoured to collaborate with RUW in supporting this remarkable technology-focused event. It highlights our commitment to social responsibility, and our ongoing efforts to enhance the digital and innovation capabilities of young Bahraini women and foster their ability to harness technological tools in the service of a smarter, more sustainable future.”
For his part, Dr. Humam ElAgha, Acting Dean of the College of Engineering and Technology at the University, said: “BuildHer CityHack 2025 embodies our hands-on approach to education. By tackling real-world problems through creative thinking and sustainable solutions, we're preparing women to thrive in the knowledge economy – a cornerstone of the University's vision.”