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Britain’s competition regulator has opened a formal investigation into whether Meta’s proposed new terms for publishers were unfairly exploitative and could amount to an abuse of market power, the regulator said Friday.
The Competition and Markets Authority (CMA) said it will examine whether the terms and conditions Meta planned to introduce on Nov. 20 — before the company placed them on hold — would “unfairly harm news publishers and other content businesses” by allowing the social media giant to access and reuse publishers’ material to develop its own products, including artificial intelligence features.
Scope of the probe
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The CMA said its inquiry will determine whether “Meta is abusing a dominant position by imposing exploitative terms on publishers and advertisers,” language the watchdog published in its statement announcing the investigation. The regulator cited concerns raised by news organisations and other businesses that rely on Meta’s platforms to reach customers and audiences, saying an unfair imposition of the new terms could breach competition law.
In outlining its remit, the CMA noted it had received complaints from publishers and other content businesses about the proposed contractual changes and is acting to establish whether those changes would unduly limit choice or extract unfair value from content creators.
Meta’s response
A Meta spokesperson told AFP the company has committed to consulting publishers and other stakeholders before changing terms. In a direct comment, the spokesperson said, “We’ve already committed not to change our terms without consulting publishers and other stakeholders.” The spokesperson added, “We welcome the opportunity to explain our approach to the CMA.”
Related legal action abroad
The CMA’s announcement follows legal moves in other countries. A Norwegian court this week temporarily barred Meta from enforcing the new user terms after 10 media outlets argued the changes would threaten their rights to their content. That decision was cited in coverage of the dispute and underscores the international reach of the controversy surrounding Meta’s proposed contract language.
Why regulators and publishers are concerned
According to the CMA, the contested terms could permit Meta to access and use content from publishers’ websites to develop and provide products and services — for example, features powered by artificial intelligence — without giving publishers adequate choice or compensation. The regulator said such an outcome could be harmful because thousands of U.K. businesses depend on Meta’s services to connect with audiences, making any exploitative contractual terms potentially damaging to competition in digital markets.
CMA Chief Executive Sarah Cardell said the authority had “heard concerns from news publishers and other businesses and [is] acting swiftly to investigate whether Meta’s proposed changes may breach competition law.”
The CMA did not set a public deadline for concluding the probe. Meta has paused implementation of the disputed terms while the investigation and parallel legal challenges continue.
