3 ms·

How does a UK regulator have any say in an M&A deal between two American companies? What am I missing?

• mjburgess 5y ago
  From the FT, > Facebook controls 40 to 50 per cent of the UK display advertising market according to the CMA. Giphy had offered paid advertising in the US and the CMA argued that, absent the merger, Giphy could have gone on to expand that service into the UK — something the company has denied. I'm guessing its related to this point. However, > . In a response to the CMA’s provisional findings Meta accused the watchdog of “engaging in extraterritorial over-reach” And yet the EU is also doing the same, > In Brussels, EU officials are looking at new ways to examine mergers that fall outside their scope on the basis of revenues alone
• mixtur2021 5y ago
  Meta/FB has a legal presence in the UK and offers services in the UK. It needs to operate according to UK Law. In practice, I don't know what the reality of this will mean. Does Giphy continue to operate as a separate company in the UK then? How's that going to work?
• aahortwwy 5y ago
  UK regulators regulate the UK market, in which Meta and Giphy both participate. If companies don't want to comply with UK regulation they are, of course, free not to participate in the UK market.
  • mnd999 5y ago
    I think this would be an excellent outcome for all.