Britain's competition watchdog has opened an investigation into whether Meta is imposing 'exploitative' new terms that allow it to use news publishers' content for its own products, including artificial intelligence, without giving media organisations adequate choice.
The Competition and Markets Authority (CMA) said the terms, which Meta had planned to introduce in November before putting the plan on hold, could amount to an abuse of the company's dominant position. Chief executive Sarah Cardell said the watchdog was acting swiftly on concerns from news publishers and other businesses that the proposed changes may breach competition law.
The UK probe follows actions elsewhere in Europe against Meta's proposed new rules and its use of media content. In Norway, a court temporarily banned Meta from enforcing the new user terms after ten media outlets argued it would threaten their rights to their content.
In France, the Paris Appeals Court rejected Meta's attempt to overturn a regulatory order to negotiate in good faith with French media over neighbouring rights payments. The court ruled that Meta's conduct had caused 'serious and immediate harm to the press sector' and said the company had provided only 'fragmentary, opaque and unverifiable data' about its use of media content.
A Meta spokesperson said the company had already committed not to change its terms without consulting publishers and other stakeholders, and welcomed the opportunity to explain its approach to the CMA. The company said it was disappointed with the French ruling and was considering what steps to take. The DVP association of publishers, of which AFP is a member, called the rulings a 'major development'.
Analysis
Why This Matters
- The coordinated action by regulators in the UK, Norway, and France signals a significant European effort to set legal limits on how tech platforms use publishers' content for AI training and product development.
- The outcome could establish a compensation model for 'neighbouring rights', with direct implications for the media industry's revenue streams in the age of generative AI.
Background
The relationship between large tech platforms and news publishers has long centred on revenue sharing and traffic referrals. The rapid adoption of generative AI has escalated this conflict, as AI models are trained on vast amounts of published text, often without explicit licensing. European Union copyright frameworks, including neighbouring rights, give publishers a legal avenue to demand payment for the use of their content by platforms.
Key Perspectives
- UK Competition and Markets Authority (CMA): Argues that Meta's new terms may be exploitative and an abuse of a dominant position, harming the ability of news publishers and content businesses to control their own work.
- Meta: Contends it has committed to consulting stakeholders before implementing any changes, and expressed disappointment with the legal rulings in France, indicating a willingness to argue its case.
- French and Norwegian media groups: Successfully secured court orders that force Meta to negotiate in good faith and halt the unilateral imposition of terms, arguing the company is using their content without fair compensation.
What to Watch
- The CMA's preliminary findings and whether the investigation compels Meta to significantly revise its proposed terms of service for news publishers.
- Whether Meta provides the transparent usage data the French court demanded during the mandated negotiations.
- The potential for other jurisdictions to open similar regulatory probes, creating a unified European standard or a patchwork of national rules.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedThe UK has launched a probe into Meta over its media-content terms.Euronews: “The UK's competition watchdog has launched an investigation into whether Meta is imposing "exploitative" new terms”
- SupportedEuropean action is under way over Meta’s media-content terms.Euronews: “The British governments effort follow hot on the heels of action taking place across Europe and around the world against Meta's proposed new rules and its practices in general in using media content.”
- SupportedThe UK investigation concerns whether Meta’s terms let it use publishers’ content for its own products, including AI, without giving media organisations adequate choice.Euronews: “The UK's competition watchdog has launched an investigation into whether Meta is imposing "exploitative" new terms that allow it to use publishers' content for its own products, including AI, without giving media organisations adequate choice.”
- SupportedMeta had planned to introduce the terms in November before putting the plan on hold.Euronews: “The CMA said the new terms, which the Facebook and Instagram parent had planned to introduce on November 20 before putting it on hold”
- SupportedThe CMA said the terms could amount to an abuse of Meta’s dominant position.Euronews: “could amount to an abuse of its dominant position in the market.”
- SupportedCMA chief executive Sarah Cardell said the watchdog was acting swiftly over concerns that Meta’s proposed changes may breach competition law.Euronews: “"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.”
- SupportedA Norwegian court temporarily banned Meta from enforcing the new user terms.Euronews: “A Norwegian court this week temporarily banned Meta from enforcing the new user terms”
- SupportedTen media outlets argued that the terms would threaten their rights to their content.Euronews: “after ten media outlets argued it would threaten their rights to their content.”
- SupportedThe Paris Appeals Court rejected Meta’s attempt to overturn an order to negotiate in good faith with French media over neighbouring-rights payments.Euronews: “the country's appeals court rejected on Thursday an attempt by Meta to overturn an order to negotiate in good faith with French media over rights payments for information used on its social networks.”
- SupportedThe Paris Appeals Court found that Meta’s conduct caused “serious and immediate harm to the press sector.”Euronews: “In two rulings, the Paris Appeals Court found that Meta's conduct had caused "serious and immediate harm to the press sector" in France”
- SupportedThe Paris Appeals Court found that Meta had provided only “fragmentary, opaque and unverifiable data” about its use of media content.Euronews: “The Paris Appeals Court found that Meta had in the negotiations with publishers provided only fragmentary, opaque and unverifiable data about its use of media content.”
- SupportedMeta said it had committed not to change its terms without consulting publishers and other stakeholders, and welcomed the opportunity to explain its approach to the CMA.Euronews: “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," they added.”
