The U.K.'s Competition and Markets Authority could urge Facebook Inc. to divest some of its assets and services if it finds the proposed acquisition of Giphy Inc. to be anti-competitive, Bloomberg News reported Oct. 19.

The warning came during a court hearing for Facebook's appeal against the CMA's demands over the social media company's Giphy deal.

According to the CMA, Facebook is not coordinating enough with the regulator to refine the demands. Meanwhile, Facebook told Bloomberg that it was "cooperating fully" with the regulator, but believes the CMA's restrictions "should be reviewed by the tribunal."

In June, the U.K. regulator launched its investigation into Facebook's proposed acquisition of Giphy, due to potential substantial lessening of competition in the U.K. or in other markets. In response, Facebook filed a complaint against the CMA.