Defence industry organisations from India and the UK have come together to create a new Defence Industry Joint Working Group for more effective cooperation. The initiative is supported by the UK Government.

The inaugural meeting of the UK-India Defence Industry Joint Working Group was held on the side-lines of DefExpo 2022 in Gandhinagar, Gujarat today. DefExpo will see representation from 20 UK defence companies. UK industry is already integrating Indian defence suppliers into their global supply chain, manufacturing defence equipment not just for India but for the world.

The Joint Working Group is part of an ongoing initiative between the two countries to strengthen the defence and security partnership through industrial collaboration. The UK recently issued its first Open General Export License (OGEL) in the Indo-Pacific region to India, shortening delivery times for defence procurement.

The Royal Air Force (RAF) recently conducted a subject matter expertise exchange with Defence Research and Development Organisation (DRDO) during the visit of Eurofighter Typhoon, Voyager and A400 in New Delhi and also held joint-flying exercises with the Indian Air Force (IAF).

Alex Ellis, British High Commissioner to India, said:

A stronger UK-India defence relationship is an essential element of the British and Indian governments’ Comprehensive Strategic Partnership. The British Government and industry presence at DefExpo is further proof of this, as is our support for co-creation of next generation capabilities that will be fully owned by India. The UK supports Prime Minister Modi’s ambitions of Make in India, Make for the World.

Mark Goldsack, Director, UK Defence and Security Exports, said:

This is another step in the growing defence relations between the two countries, who are working to establish a portfolio of collaborative projects to support the development of new technologies and capabilities as agreed under the 2030 Roadmap. The UK sees it is in its own interest that India becomes self-reliant in its defence needs. The UK is a world leader in critical defence technologies such as jet engine developments and electric propulsion technology. We are keen to share this expertise with India supported by our respective industries.

Further information

The Open General Export Licence is available to read here.

In the April 2022 joint statement, the UK and India have welcomed the finalisation of the Letter of Arrangement between the UK’s Defence Science and Technology Laboratory and India’s Defence Research and Development Organisation.

The UK has offered advanced core technologies to India, capable of creating an indigenous, ITAR-free jet engine owned, manufactured and exported by India.

India and the UK have established an Electric Propulsion Capability Partnership. The Joint Working Group will establish a strong partnership between our respective navies for development of Electric Propulsion capability for India.

The UK India 2030 Roadmap commits to partnership on India’s indigenous combat air programmes, including LCA Mk-II and AMCA.

Rolls Royce have established packaging, installation, marketing and services support for Rolls-Royce MT30 marine engines in India through partnership with HAL.

Thales UK and BDL have signed an agreement to produce the next generation of VSHORAD missiles in India, supplying to both the UK and Indian Armies with a ‘Made in India’ Laser Beam Riding MANPAD System.

MBDA UK have established live build capability for the Advanced Short Range Air-to-Air Missile (ASRAAM) in partnership with BDL.

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Media queries: BHCMediaDelhi@fco.gov.uk

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Published 27 May 2022
Last updated 18 October 2022 + show all updates

The Competition and Markets Authority (CMA) has found that Meta’s takeover of Giphy could allow Meta to limit other social media platforms’ access to GIFs, making those sites less attractive to users and less competitive. It also found the deal has removed Giphy as a potential challenger in the UK display advertising market, preventing UK businesses from benefiting from innovation in this market.

The CMA published its original Phase 2 decision on this case in November 2021, finding that the deal could harm social media users and UK advertisers, and ordering Meta to sell Giphy. Meta subsequently appealed that decision to the Competition Appeal Tribunal (CAT). In July 2022, the CAT upheld the CMA’s decision on 5 of the 6 challenged grounds. In particular, the CAT said it had “no hesitation” in concluding the CMA’s finding – that the merger substantially reduced dynamic competition – was lawful.

The Tribunal only found in Meta’s favour on a procedural ground relating to the sharing of third-party confidential information. In light of the finding, the CMA reconsidered its decision. The CMA has conducted an expedited review and is issuing its final decision today.

Over the past 3 months, an independent CMA panel has analysed additional third-party evidence, as well as new submissions from Meta and Giphy. Following its review, the CMA concluded Meta would be able to increase its already significant market power by:

• denying or limiting other social media platforms’ access to Giphy GIFs, thereby pushing people to Meta-owned sites, which already make up 73% of user time spent on social media in the UK, or
• changing the terms of access – for example, it could require Giphy customers, such as TikTok, Twitter and Snapchat, to provide more data from UK users in order to access Giphy GIFs

The CMA found that GIFs continue to be an important driver of user engagement on social media platforms, with people making billions of searches globally each month for Giphy GIFs.

The CMA also found the merger would negatively impact the display advertising market. Before the merger, Giphy was offering innovative advertising services in the US and was considering expanding to other countries, including the UK. These services allowed businesses, such as Dunkin’ Donuts and Pepsi, to promote their brands through visual images and GIFs.

The CMA found that Giphy’s advertising services had the potential to compete with those of Meta, and would have encouraged greater innovation from Meta and other market players. However, Meta terminated Giphy’s advertising services upon acquisition, removing a potential ad tool for UK businesses. The CMA considers this particularly concerning given Meta controls almost half of the £7 billion display advertising market in the UK.

The CMA has concluded the only way to avoid the significant impact the deal would have on competition is for Giphy to be sold off in its entirety to an approved buyer.

Stuart McIntosh, Chair of the independent inquiry group carrying out the remittal investigation, said:

This deal would significantly reduce competition in 2 markets. It has already resulted in the removal of a potential challenger in the UK display ad market, while also giving Meta the ability to further increase its substantial market power in social media.

The only way this can be addressed is by the sale of Giphy. This will promote innovation in digital advertising, and also ensure UK social media users continue to benefit from access to Giphy.

For more information, visit the Meta/Giphy case page.

1. For media queries, please contact the press office on press@cma.gov.uk or on 020 3738 6460.
2. Members of the general public can contact the CMA for information about this update on 020 3738 6000 or general.enquiries@cma.gov.uk.
3. The CMA found that the merger would lead to a Substantial Lessening of Competition (SLC) in the following markets: (i) social media services worldwide (including in the UK) due to foreclosure of rival social media platforms; and (ii) display advertising in the UK due to a loss of dynamic competition.
4. Meta was known as Facebook, Inc until October 2021 when the company changes its corporate name.
5. The Competition Appeal Tribunal issued its judgment on Meta’s appeal on 14 June 2022.