The UK Competition Appeal Tribunal upholds the Competition Authority’s decision to prevent the acquisition of an online graphics database by a social media company (Facebook / Giphy)

In a unanimous judgment, the Competition Appeal Tribunal ("CAT") dismissed Facebook's application challenging the CMA's refusal to grant certain derogations from an initial enforcement order ("IEO") imposed in connection with Facebook's completed acquisition of GIPHY, Inc. WHAT YOU NEED TO KNOW - KEY TAKEAWAYS The CAT's decision emphasises the CMA's broad power to impose IEOs, and indicates that the exercise of its discretion to impose and administer will not be lightly second-guessed by the courts. In requesting derogations, the CAT's judgment illustrates that it is crucial for merging parties to fully cooperate with the CMA, including providing all the reasoning and information needed to assess requests. The CMA has the power to impose a fine of up to 5% of global groupwide turnover for