The UK’s Competition and Markets Authority (CMA) fined Facebook £50.5 million for breaching an order to hold separate its acquisition target, Giphy, pending the CMA’s review of the merger [1]. Takeaways The U.K. merger control regime allows acquirers the flexibility to close prior to completion of a CMA review, but acquirers should carefully consider the impact of an expansive CMA initial enforcement order (IEO) to hold separate the target business. The CMA may issue an IEO to ensure competition is protected and to preserve the CMA’s ability to order remedies or unwinding of the deal. Any material changes to the merging businesses will be subject to a strict consent process, and each party must submit regular compliance reports to the CMA. This can delay realization of the deal’s
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The UK Competition Authority fines a Big Tech company for breaching an order to hold separate an acquisition target pending its review of the merger (Facebook / Giphy)
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