Austria: Austrian Federal Competition Authority opens phase 2 merger inquiry regarding Facebook's acquisition of Giphy

On 17 August 2021, the Austrian Federal Competition Authority (AFCA) opened a phase 2 investigation into the acquisition of Giphy by Facebook and the lack of notification thereof. The acquisition itself took place in May 2020 and the AFCA was not notified of the merger at the time. The AFCA was only notified of the merger on 20 June 2021, which was followed by a (not yet final - NISI) ruling of the Austrian Cartel Court, sanctioning Facebook with a fine of EUR 9.6 million for non-notification of the merger. The duty to notify the AFCA is pursuant to § 9 para. 4 of the Cartel Act (KartG). The investigation reached phase 2, since competition concerns persisted and consequentially make an in-depth investigation necessary. Specifically, the AFCA is concerned that the acquisition will increase Facebook's dominant position in the social media and online advertising market. The Austrian Cartel Court now has 5 months to examine the matter.