UK competition watchdog opens investigation into Meta's terms for using publishers' content in AI

Britain's Competition and Markets Authority (CMA) on October 30 opened an investigation into whether Meta's commercial terms for businesses using its platforms and services breach competition law.

The terms, which Meta planned to revise on November 20 but has since put on hold, could allow it to collect content from the websites of businesses and publishers that use its services and use it to develop and provide its own products and services, including its AI features, without those businesses getting a choice on if or how their content is used, the CMA said. The regulator is concerned that requiring news publishers and other content businesses to accept these terms could amount to an unlawful imposition of unfair trading conditions on thousands of UK businesses that rely on Meta to reach customers and audiences.

The CMA is using its Competition Act 1998 powers to investigate urgently, following concerns raised by stakeholders including the News Media Association and the Movement for an Open Web. It will assess whether Meta holds a dominant position in a relevant UK market and, if so, whether the terms abuse that position. "We've heard concerns from news publishers and other businesses and are acting swiftly to investigate whether Meta's proposed changes may breach competition law," said CMA chief executive Sarah Cardell. The CMA stressed that no decision has been made on whether Meta has broken the law.

Meta had originally planned to introduce the changes on October 30, delayed them to November 20 after engaging with the CMA, and on October 28 paused the rollout pending consultation with industry groups. Meta said there were "no grounds" for an investigation, Reuters reported. "We've already committed not to change our terms without consulting publishers and other stakeholders," a Meta spokesperson said. "We welcome the opportunity to explain our approach to the CMA." Separately, the CMA is seeking information from Meta about its new Meta One business subscription and concerns about small businesses posting external links on Facebook and Instagram.

As Euronews noted, the probe adds to mounting pushback in Europe: a Norwegian court this week temporarily barred Meta from enforcing the new terms after ten media outlets sued, and the Paris Appeals Court upheld an order requiring Meta to negotiate in good faith with French media over neighbouring-rights payments.

Sources: CMA (GOV.UK), CMA case page, Reuters, Euronews. Image: AP / Euronews