United Kingdom: Facebook fined £50.5 million during ongoing merger inquiry for breach of an order by the CMA
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Facebook fined £50.5 million during ongoing merger inquiry for breach of an order by the CMA
On 20 October 2021, the Competition and Markets Authority (CMA) fined Facebook for non-compliance with an order issued by the CMA. Specifically, the CMA issued an initial enforcement order (IEO) in June 2020, when it began its investigation into the Facebook/Giphy merger. This standard practice should ensure that companies do not act upon the merger and continue to compete regularly. Despite several warnings, Facebook did not comply with the order and only provided the CMA with very limited compliance updates that are necessary under the IEO. The CMA deemed this behaviour to be deliberate, rectifying the fine of £50 million. It was the first time the CMA ever handed out such a fine. Finally, Facebook was also fined £500,000 for changing its Chief Compliance Offer twice without the consent of the CMA. The merger inquiry is still ongoing and a decision has not been reached.
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