What the CMA has opened
The Competition and Markets Authority has launched a formal investigation into Meta’s commercial terms for businesses that use its platforms, including news publishers and advertisers. The regulator is using its powers under the Competition Act 1998 to examine whether Meta is abusing a dominant market position by imposing what it calls exploitative and unfair terms.
At issue are terms that would allow Meta to collect content from the websites of businesses and publishers that rely on its services, then use that content to develop and provide its own products, including AI features, without giving those businesses any say over whether or how their material is used.
Why it matters for UK businesses
The CMA says this could amount to an unlawful imposition of unfair trading conditions on thousands of UK businesses that depend on Meta to reach customers and audiences. The complaints that prompted the probe came from stakeholders including the News Media Association and the Movement for an Open Web.
The investigation will first determine whether Meta holds a dominant position in a relevant UK market. If it does, the CMA will then assess whether its commercial terms amount to an abuse of that position under the Chapter II prohibition of the Competition Act 1998.
Timeline of the dispute
Meta had originally planned to bring in the revised terms on 30 October. Following engagement with the CMA, it pushed that date back to 20 November. Then, on 28 October, Meta announced it would pause the rollout entirely pending consultation with industry groups. The CMA’s investigation, confirmed in its press release, follows directly from these developments.
CMA chief executive Sarah Cardell said digital platforms play an important role in helping UK businesses reach customers worldwide, but that a dominant company must not use that position to impose unfair terms. She said the CMA is acting swiftly to examine whether Meta’s proposed changes may breach competition law and is aiming for a “swift and satisfactory resolution”.
No finding of wrongdoing yet
The CMA stresses this is only the start of its inquiry and that no decision has been made on whether Meta has broken the law. It will now gather evidence from Meta and other affected parties.
A separate strand on Meta One
Alongside the CA98 investigation, the CMA says it is separately seeking information from Meta about its new Meta One business subscription service. This follows concerns raised by the Federation of Small Businesses about the potential impact on small firms of posting external links on Facebook and Instagram without paying a subscription fee. The CMA says no decision has been taken on formal action here, and this issue sits outside the scope of the investigation launched today.
What to watch next
UK publishers and content businesses affected by Meta’s paused terms should watch the CMA’s case page for updates as evidence gathering proceeds. Any decision on whether Meta has broken competition law, and on the separate Meta One concerns raised by small businesses, is still to come.