UK Watchdog Investigates Meta Over AI Training Data Practices

Meta, the parent company of Facebook and Instagram, is facing an investigation by the United Kingdom's competition watchdog over its plans to use publishers' content to train its artificial intelligence models. The Competition and Markets Authority (CMA) will probe whether Meta is imposing “exploitative terms” and “abusing” its market position by seeking to “scrape” content from publishers who use its platforms.

Concerns have been raised that Meta could use this content to improve its AI products without compensating the publishers. The investigation follows a series of articles highlighting opposition to Meta's proposed changes to its terms and conditions. CMA chief Sarah Cardell stated that the authority is acting swiftly to investigate whether Meta’s proposed changes may breach competition law, emphasizing that companies holding dominant positions must not impose unfair terms.

Members of Parliament, peers, and campaign groups have welcomed the CMA's intervention. Baroness Stowell argued that Meta should not be allowed to exploit its dominant position to acquire publishers' content on its own terms, threatening the businesses that create it. Baroness Kidron described Meta's new proposed terms as a “land grab” and an “extraordinary abuse.” Former Tory tech minister Damian Collins sees the move as a positive sign that the CMA is prepared to challenge the market power of large tech companies.

Theo Bamber, head of the News Media Association, which represents many UK publishers, stated that Meta has presented publishers with a difficult choice: either allow their content to be used for free to power AI products or leave a platform crucial for news distribution. He applauded the CMA's action to protect British businesses and citizens' access to quality news.

The controversy centers on Meta’s proposed changes to the terms of service for its platforms, which critics argue would grant the company broad rights to collect content from UK publishers, including from their own websites, to train its AI models. These changes have been branded a “license to steal” by critics, as they could significantly weaken existing protections for publishers.

Publishers would face the choice of accepting the new terms or removing their accounts from Meta's platforms, a move that could be financially damaging due to the traffic these platforms drive to their sites. Meta has already delayed the implementation of these changes twice amid significant backlash, including from publishers in the United States and Europe. A court in Norway previously granted an injunction blocking Meta from introducing similar changes there.

The CMA's probe will assess whether Meta holds a dominant position in the relevant UK market and if the proposed terms breach the 1998 Competition Act. The watchdog stated that it is concerned that requiring publishers and other content businesses to accept these terms could constitute an unlawful imposition of unfair trading conditions for thousands of UK businesses that depend on Meta's services.

A Meta spokesperson asserted that there are no grounds for a competition investigation and that the company has committed to consulting with publishers and stakeholders before altering its terms. Meta stated it welcomes the opportunity to explain its approach to the CMA.