The Competition and Markets Authority (CMA) has opened a formal investigation into whether Meta’s commercial terms for businesses using its platforms and services break competition law.
The CMA said the terms could allow Meta to collect content from the websites of businesses and publishers that use its services, and then use that content to develop its own products and services, including its AI features. Businesses would not get a choice on whether or how their content is used.
The investigation, under the Competition Act 1998, will assess two questions:
- whether Meta holds a dominant position in a relevant UK market
- if so, whether its terms amount to an abuse of that position by imposing unfair trading conditions
The CMA said thousands of UK businesses rely on Meta’s services to reach customers and audiences. It acted on concerns raised by stakeholders including the News Media Association and Movement for an Open Web.
Timeline
Meta had planned to bring in the revised terms on 30 October. After engagement with the CMA, it delayed them to 20 November, then on 28 October paused the rollout pending a consultation with industry groups.
Sarah Cardell, chief executive of the CMA, said that where a company holds a dominant position, it must not use that position to impose unfair terms. The CMA stressed that no decision has been made on whether the law has been broken, and it will now gather evidence from Meta and affected third parties.
Meta told Reuters there were “no grounds” for an investigation and that it had already committed not to change its terms without consulting publishers and other stakeholders.
Meta One and paid links
Separately, the CMA is seeking information from Meta about its new Meta One business subscription service. The Federation of Small Businesses has raised concerns about the potential impact on small businesses of being unable to post external links on Facebook and Instagram without paying a subscription. The CMA said no decision has been taken on formal action in this area, which sits outside the new investigation.
Meta has not been designated with strategic market status under the UK’s digital markets regime. The CMA Board is due to consider its next set of proposals for that status in spring 2027.
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