The United Kingdom’s Competition and Markets Authority has launched an investigation into Meta’s commercial terms for businesses, focusing on whether the company is abusing its dominant market position by imposing unfair conditions on publishers and advertisers.
The terms could allow Meta to use their content, including for its artificial intelligence features.
Announcing the investigation on Friday under the Competition Act 1998, the CMA said Meta’s terms could enable it to collect content from websites operated by businesses and publishers using its services.
Meta could then use the material to develop its own products without giving the affected businesses a choice over whether or how their content is used.
“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,” said Sarah Cardell, the CMA’s chief executive.
The watchdog said the terms could constitute an unlawful imposition of unfair trading conditions on thousands of UK businesses. The investigation follows concerns raised by industry groups, including the News Media Association and the Movement for an Open Web.
Meta initially planned to introduce the new terms on 30 October before postponing the rollout to 20 November following discussions with the CMA.
However, on 28 October, the company suspended the rollout pending consultations with industry groups, according to the regulator.
The investigation will first establish whether Meta holds a dominant position in a relevant UK market.
If it does, the CMA will examine whether the company has abused that position through its commercial terms.
The regulator stressed that no conclusion has been reached on whether Meta breached the law.
Meta, however, said there were “no grounds” for an investigation, according to Reuters.
“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,” a Meta spokesperson said.
Publishers across Europe had urged regulators in the EU and UK to intervene and prevent Meta’s AI terms from taking effect.
