Competition watchdog to investigate Meta terms for publishers and businesses

The UK’s competition watchdog is investigating Facebook owner Meta over whether it is imposing “exploitative terms” on publishers and advertisers which breach competition rules.

The Competition and Markets Authority (CMA) said Meta’s commercial terms could allow it to access and use content from news publishers’ websites to develop and provide its own products and services.

The terms, which Meta planned to revise next month but has since put on hold, would allow it to use collected content on its AI features without these businesses getting a choice on how or if content is used.

CMA boss Sarah Cardell said the regulator sought to swiftly probe the terms after it heard “concerns” from news publishers and other businesses.

A Meta spokesman said: “There are no grounds for a competition investigation.

“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.”

The regulator highlighted concerns that requiring publishers and content businesses to accept the terms could “amount to an unlawful imposition of unfair trading conditions for thousands of UK businesses”.

The investigation will assess whether Meta – which also owns Instagram and WhatsApp – holds a dominant position in a relevant market in the UK and whether the rules therefore breach the 1998 Competition Act.

Ms Cardell said: “Digital platforms play an important role in helping UK businesses reach millions of customers around the world.

“But where a company holds a dominant position, it must not use that position to impose unfair terms.

“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, using the most appropriate powers available to us to examine these issues in detail.

“We will be working to reach a swift and satisfactory resolution to this case.”