Britain's competition regulator has launched an investigation into whether Meta is imposing "exploitative" terms on news publishers, allowing the tech giant to use their content for its own products, including artificial intelligence, without offering adequate choice. The Competition and Markets Authority (CMA) said it would examine whether the new terms "unfairly harm news publishers and other content businesses."
The terms, which Meta had planned to introduce on November 20 before putting them on hold, could amount to an abuse of its dominant position in the market, the CMA said in a statement. The watchdog will determine whether "Meta is abusing a dominant position by imposing exploitative terms on publishers and advertisers."
Under the proposed terms, Meta would be able to access and use content from news publishers' websites to develop and provide its own products, including its AI features. Thousands of UK businesses rely on Meta to reach customers and audiences, meaning an unfair imposition of the new terms could breach competition law.
"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.
A Meta spokesperson said: "We've already committed not to change our terms without consulting publishers and other stakeholders. We welcome the opportunity to explain our approach to the CMA."
European pushback against Meta
The UK probe follows a wave of actions across Europe and beyond against Meta's practices in using media content. Since May, more than 340 local and national news sites, including the Guardian, the New York Times, and USA Today, have blocked internet archive crawler bots to prevent them from collecting data for training AI models.
In Norway, a court this week temporarily banned Meta from enforcing its new user terms after ten media outlets argued that the terms would threaten their rights to their content. The court's decision is a significant setback for the company, which has faced criticism for its approach to content licensing.
In France, the Paris Appeals Court on Thursday rejected Meta's attempt to overturn an order to negotiate in good faith with French media over rights payments for information used on its social networks. In two rulings, the court found that Meta's conduct had caused "serious and immediate harm to the press sector" in France, affirming the position of the country's anti-monopoly body.
The French regulator had in July ordered Meta to "negotiate in good faith" with media groups on neighbouring rights payments—a form of copyright payment for the use of information on social media platforms. The regulator noted that Meta had continued to use media content without making payments since deals lapsed, and that its conduct could be considered "abuse of a dominant position."
The Paris Appeals Court also found that Meta had provided only fragmentary, opaque, and unverifiable data about its use of media content during negotiations. The DVP association of publishers, of which AFP is a member, called the rulings a "major development" and urged Meta to fully meet its obligations to media.
A Meta spokesman said: "We are disappointed with the Paris Appeals Court ruling" and that the company was considering its next steps.
Meta is also facing mounting global pushback against its platform designs and features, especially amid claims of harms against children and teenagers. The company is due back in court in the US later this month alongside Snap. The UK investigation adds to the pressure on the company, which is already grappling with regulatory scrutiny in Brussels and other capitals.
The CMA's probe is part of a broader European effort to hold big tech accountable for its market power and its impact on the media sector. As the continent's regulators coordinate more closely, Meta may find it increasingly difficult to impose terms that publishers see as exploitative.
