Meta faces severe scrutiny over new "exploitative" terms of service #
London, UK - Britain's competition watchdog Friday opened an investigation into whether Meta was imposing "exploitative" new terms allowing it to use media content for its own products, including AI, without giving publishers adequate choice.
The probe will examine whether the "terms and conditions" from the US technology giant "unfairly harm news publishers and other content businesses", the Competition and Markets Authority said in a statement.
The CMA said the new terms, which the Facebook and Instagram parent had planned to introduce on November 20 before putting them on hold, could amount to an abuse of its dominant position in the market.
The watchdog will determine whether "Meta is abusing a dominant position by imposing exploitative terms on publishers and advertisers."
Meta's new terms could allow it to access and use content from news publishers' websites to develop and provide its own products, including its AI features.
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.
Thousands of UK businesses rely on Meta to reach customers and audiences, meaning an unfair imposition of the new terms could breach competition law.
"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.
A Norwegian court this week temporarily banned Meta from enforcing the new user terms after ten media outlets argued it would threaten their rights to their content.
Cover photo: PAUL FAITH / AFP