UK opens a competition case into Meta’s AI content terms
The UK Competition and Markets Authority has opened a formal investigation into Meta’s commercial terms for businesses. It will examine dominance and whether conditions governing access to publishers’ and advertisers’ website content are unfair. The case proceeds after Meta paused revised terms. No finding that competition law was broken has been made.
Artificial Intelligence··Evening
The CMA opens a formal competition case
The UK Competition and Markets Authority, the country’s competition regulator, opened an investigation into Meta’s commercial terms on 30 October. It will assess whether Meta holds a dominant position in a relevant UK market and whether its terms abuse that position. The inquiry concerns businesses using Meta’s platforms and services, including publishers and advertisers. No decision has been made that competition law was broken; the authority is beginning to gather and assess evidence.[1], [2]
The inquiry concerns businesses’ choice over website content
The contested terms could allow Meta to collect content from the websites of businesses using its services and use it in its own products, including AI features. The CMA is examining concerns that businesses relying on Facebook or Instagram to reach audiences lack meaningful choice over that use. The News Media Association and Movement for an Open Web raised concerns with the regulator. CMA chief executive Sarah Cardell said dominant platforms must not impose unfair terms.[1]
The investigation follows the pause in new terms
Meta originally planned to introduce the changes on 30 October, moved the date to 20 November and then paused implementation on 28 October while consulting industry groups. The formal investigation proceeds under the Competition Act 1998, using existing competition-law powers. Meta and affected third parties will provide evidence. The authority has not designated Meta with strategic market status under its newer digital-markets regime. The investigation’s opening is a new regulatory action following the earlier implementation delay.[1]
