[HN Gopher] Facebook shouldn't be allowed to buy Giphy, says UK ...
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       Facebook shouldn't be allowed to buy Giphy, says UK regulator
        
       Author : elorant
       Score  : 105 points
       Date   : 2021-08-15 15:42 UTC (7 hours ago)
        
 (HTM) web link (www.theverge.com)
 (TXT) w3m dump (www.theverge.com)
        
       | whywhywhywhy wrote:
       | >The CMA provisionally found that Facebook's ownership of Giphy
       | could lead it to deny other platforms access to its GIFs
       | 
       | It's GIFs? Since when did Giphy own anything that it distributes.
       | 
       | The idea that gifs are centralized is absurd.
        
         | rvz wrote:
         | Yeah. It sounds like a terrible argument. I'm sure the same
         | Gifs are available on Imgur and gfycat.com as well.
        
         | stirfish wrote:
         | >Since when did Giphy own anything that it distributes.
         | 
         | Copyright law confuses me too.
        
       | the-dude wrote:
       | "Facebook is allowed to buy Whatsapp if it does not merge the
       | identities / keeps WA separate from FB" ( EU ).
       | 
       | Well, what the heck. I thought they really said that. But this :
       | https://ec.europa.eu/commission/presscorner/detail/en/IP_14_...
       | does not say so.
        
       | 0235005 wrote:
       | This hopefully seem like the beginning of the end for the
       | Facebook monopoly and excessive acquisitons.
        
         | varelse wrote:
         | In one corner, we have technologically behind the curve
         | government bureaucrats and mediocre lawyers, in the other, we
         | have bottomless pockets and the best lawyers money can buy...
         | 
         | Fight!!!
        
           | echelon wrote:
           | We seem to have forgotten victories like GDPR, CCPA, and the
           | Microsoft anti-trust case.
           | 
           | The Microsoft anti-trust case took the wind out of
           | Microsoft's sails and kept the web free just long enough for
           | new giants to emerge. (And Microsoft remains a 1T+ company.
           | If anything, it made them _stronger_ because they had to
           | diversify and fight harder.)
           | 
           | If we (or Europe) try it again, we might see more wealth in
           | more companies. More experiments. More innovation. Less moat
           | defending, taxation, walled gardens, and comprehensive
           | surveillance dragnets.
           | 
           | Having Google, Apple, Facebook, and Amazon own everything
           | makes them all complacent iterators, data hoarders, tax
           | collectors, and small business/innovation cripplers.
           | 
           | The anti-trust hammer is a powerful tool. It elevated our
           | entire industry. We (through our elected officials) should
           | wield it.
        
             | varelse wrote:
             | Yeah good luck with that Outlook. I think Steve Ballmer is
             | the one who knocked the wind out of the sails and the sales
             | of Microsoft more than the antitrust lawsuit but maybe I'm
             | just crazy.
             | 
             | My own experience with Microsoft during the naughts was
             | shortly after having unified Windows NT and consumer
             | Windows through Windows XP, they scrapped it for a
             | glorified CPU/GPU hardware land grab called Vista. And
             | everything sucked again for another 5 years 100%
             | unnecessarily.
             | 
             | As for GDPR and CCPA. Yeah, thanks a whole hell of a lot.
             | The tech companies are just as creepy as they ever were,
             | but now I have to fill out a form to acknowledge how creepy
             | they are. So privacy, very security.
             | 
             | Go split Amazon into Amazon retail and Amazon Web Services.
             | Go split Microsoft into Microsoft OS, Microsoft gaming,
             | Microsoft office, and Microsoft Cloud Computing. Go smash
             | Google into 10 or more independent companies. Pull any one
             | of those things off and I'll be impressed. Otherwise it's
             | all sound and fury to me but I guess it keeps the
             | bureaucrats gainfully employed and off the streets so
             | there's that.
             | 
             | The funny part is that the whole Microsoft antitrust thing
             | was about Internet Explorer, which was always a crap-tastic
             | web browser, and it has now more or less died off of
             | natural causes because Google outcroptasticed them and
             | Mozilla, despite abundant internal funding, squandered it
             | all.
        
         | missedthecue wrote:
         | What exactly does Facebook have a monopoly on?
        
           | croes wrote:
           | Social network in large parts of the world.
        
       | mrkramer wrote:
       | Ok I'll try to be serious how exactly monopoly over GIFs would
       | endanger users of social networks and industry in general? Except
       | Facebook gathering your GIFs usage data. Facebook would know what
       | GIFs you use that's a big problem isn't it?!
       | 
       | Why did they allow acquisition of Instagram and WhatsApp then?
       | Makes zero sense to me.
       | 
       | And if Facebook is not allowed to buy other social networks then
       | Chinese will buy them. And then again we will be in the same
       | situation just like we are with TikTok and Huawei. Data going to
       | CCP and not to Corporate America. I prefer Corporate America over
       | CCP to be honest.
        
         | croes wrote:
         | FB could track a lot more through Giphy just like they do with
         | their like buttons. It's too late to do something against the
         | acquisition of WhatsApp and Instagram but maybe they have
         | learned that's a huge mistake to let FB acquire such services.
         | They are not obliged to repeat their mistakes.
        
         | barbazoo wrote:
         | IP address and gif search term might be a valuable data point
         | to add about a person.
        
           | ljm wrote:
           | With the Slack integration, someone using `/giphy searchterm`
           | will send over things like: slack enterprise ID, team ID,
           | user ID, the team's domain, their name, the slack workspace's
           | name, etc...
           | 
           | Facebook could quite easily use that data to draw more
           | connections between people. Who they work with, who they
           | might know within the same teams and enterprises, etc. etc.
        
             | ec109685 wrote:
             | No, that's incorrect. The giphy command is created by Slack
             | and doesn't share any data with Giphy [1].
             | 
             | [1] https://medium.com/delta-cx/facebook-bought-giphy-but-
             | doesnt...
        
               | crtasm wrote:
               | That says "...designed to give Giphy nearly zero data.",
               | unclear what is still shared.
               | 
               | Signal goes to great lengths to preserve privacy with
               | their giphy integration: https://signal.org/blog/signal-
               | and-giphy-update/
        
               | ljm wrote:
               | And at what point does FB use their considerable might to
               | replace Slack's giphy bot with one that FB makes?
               | 
               | The article basically says that Slack made a special case
               | for Giphy, and so they decided that Giphy in particular
               | doesn't get the same treatment as your typical slack bot
               | or slash command.
               | 
               | So, all FB needs to do is block that integration and
               | either force their own or negotiate a new setup with
               | slack. "You have a command called giphy and giphy is our
               | trademark, so stop."
               | 
               | The article you link to explains all of this, so I don't
               | think you've refuted my point, really, except to say that
               | it doesn't happen _right now_.
        
           | mrkramer wrote:
           | Facebook already has it with or without Giphy.
        
             | croes wrote:
             | If you don't use any FB services they don't, but with Giphy
             | any messenger using it could be forced.
        
       | pg_bot wrote:
       | This seems like retaliation for the success of their previous
       | acquisitions of instagram and whatsapp. GIFs are not a money
       | maker, and almost anyone could build a competitor to giphy
       | without hassle. There's no secret sauce, none of their content is
       | protectable, and there's no moat that can protect whatever
       | advantage they have. Plus it sounds like their business was
       | already under duress, so why block an acquisition for any other
       | reason than spite or incompetence?
        
         | somehnacct3757 wrote:
         | I always thought it was because Giphy is integrated into a
         | bunch of mobile keyboards and third party chat services. These
         | services would never integrate a Facebook gif service because
         | of the implication. So giphy's entire valuation lies in being a
         | trojan horse for an established surveillance capitalist.
        
           | ljm wrote:
           | That's my read on it: Facebook gets giphy, and they reach
           | into all kinds of things they currently can't see. I'm sure
           | the giphy integrations in slack, discord, telegram, etc.
           | would become fresh sources of data depending on what the bot
           | APIs give you in a request.
           | 
           | They start learning who you're working with in Slack, and you
           | start seeing them in your friends suggestions. I don't think
           | there's any reason to expect that FB would act in any kind of
           | good faith with this stuff - why else would you buy a gif
           | hosting platform if not for the entrenched integrations and
           | their access?
        
             | jjulius wrote:
             | Completely agree with this take. It's unsettling.
        
         | EGreg wrote:
         | Because Facebook has a habit of buying companies that cement
         | their reach. When Google bought YouTube, they were a massively
         | money-losing business. It is now one of the main properties
         | that gives Google an actual advantage on the Web.
        
         | mschuster91 wrote:
         | Facebook already has way too much power over the data of way
         | too many citizens, and they continue to buy up data lakes left
         | and right. _This_ is what is upsetting European regulators and
         | anti-trust agencies.
         | 
         | The article quotes the CMA:
         | 
         | > Alternatively, it could change the terms of this access - for
         | example, Facebook could require Giphy customers, such as
         | TikTok, Twitter and Snapchat, to provide more user data in
         | order to access Giphy GIFs. Such actions could increase
         | Facebook's market power, which is already significant.
         | 
         | And then, as if to show that the author hasn't understood a
         | tiny bit of the issue at hand, he writes:
         | 
         | > Putting aside the logic that someone would switch to using
         | Facebook because of GIFs (I love GIFs as much as the next
         | person, but come on), the CMA argues that Giphy was in the
         | process of building up an ads business that would have competed
         | with Facebook.
         | 
         | It's not "building an ads business", the issue the CMA has is
         | that everyone and their dog, including people not on Facebook,
         | uses Giphy - which means that if Facebook were to buy Giphy
         | they could scoop up _an awful lot_ of data.
        
           | [deleted]
        
         | emodendroket wrote:
         | Spite and/or sending a message/being seen to send a message to
         | Facebook seem like likely factors.
        
       | leros wrote:
       | What happens if only the UK says this but the US allows it?
        
         | detaro wrote:
         | What the US thinks is not really relevant to what UK regulators
         | do. Facebook still has to deal with their actions one way or
         | the other.
        
       | lloydatkinson wrote:
       | Good. Many services use giphy and I don't want to need a Facebook
       | account to use gifs.
        
         | berkes wrote:
         | Even if you can keep using it without such an account, it is
         | another datasource for Facebook. Another way to track you in
         | your daily use of tech.
        
       | [deleted]
        
       | Traster wrote:
       | I think this is actually a great decision by the UK regulator.
       | I'm not convinced it'll be effective, but I think it's the right
       | move. You can't have the largest encumbent in a space start to
       | hoover up its suppliers to the detriment of its competitors.
        
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       (page generated 2021-08-15 23:01 UTC)