It's not a random government across the world. Facebook does business in the UK market, has an office and personnel in the UK, and has customers in the UK.
How relevant is the UK mow that it has exited the EU? If I am Facebook I pull out of the UK or at least threaten to do so. The general public will scream at their MPs to fix the problem.
You mean that tiny little UK that produces only around 2,5% of the gross world product? ;) Being fifth on a sorted list that is pretty long doesn't say much all by itself. The overall distribution matters, too. Seen that way, a successful company that is operating world wide and highly profitable could give up 2 to 3% of its revenue and continue to thrive.
However, I don't see how companies alone have the power to openly strongarm governments. It would be a pretty foolish move. But withdrawing from a country's market to cut losses can be a correct move.
Facebook's UK revenue in just one year (around £1.2b) is 4-5x what it paid to buy Giphy ($300-400m). They could exit the UK market just to spite the UK, but it makes no business sense to do so.
Threating to pull out of the UK would have no effect for this matter. The CMA are basically saying that FB are breaking competition laws, so need to sell.
They wouldn't able to say "Well, you're breaking the law but because you're threating to leave, we will let you get away with it."
But they can say "If you did leave, we could no longer ask you to sell".
Giphy isn't big enough for that, but if for example the CMA requested that of Instagram, then it could be a good business decision to just leave the UK.
About 67 million potential users. Plus a large office of hundreds of staff members, lots of investment into people and real-estate, and billions of yearly revenue. About that relevant.
Also I do not think the general public will scream at their MP's to fix this problem. Not many people say anything to their MP at all about anything, and hating FB is quite popular.
The UK just left its largest export market (2.5x by annual export value compared to the US), which responded with tariffs. What public outrage there was was ignored. Why would this be any different?
The current antitrust-curious U.S. administration teaming up with the U.K. government to rein in Meta would be a very amusing and cyberpunk thing to happen.
The opinion of the UK competition regulator is well respected in the EU, so they'll use the analysis as the basis of any decision they might make in terms of this situation. As for Facebook pulling out of the UK, they're free to do so, you might get some complaints in but it'll be a storm that blows over in a short space of time. The danger for Facebook is shows the world what a country without Facebook would look like.
> If I am Facebook I pull out of the UK or at least threaten to do so
That wouldn’t do anything, legally speaking. The acquisition was under British jurisdiction when it happened. This is the U.K., not El Salvador. Its system is heavily integrated with America’s. If Facebook blew off the CMA, it could find relief in U.S. courts. Given how unpopular Facebook is, State would be unlikely to intervene on its behalf.
And plenty of people hate traditional media. THere would be wall to wall ads from facebook about how they're being mistreated by the jealous traditional media and corrupt government.
People who hate the traditional media don't automatically like Facebook. They may be users of Facebook, but oftentimes the right hates them for censorship/moderation and the left hates them for corporate malfeasance.
