United Kingdom · AI regulation, Contracts and commercial

UK CMA Investigates Meta Over Commercial Terms and Use of Business Content for AI

On 30 October 2026, the UK Competition and Markets Authority opened an investigation into whether Meta's proposed commercial terms unlawfully exploit businesses by allowing it to use content from their websites, including for AI products, without giving them meaningful control over that use.

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United Kingdom

What changed.

The UK’s Competition and Markets Authority (CMA) launched a formal investigation into Meta on 30 October 2026, examining whether its proposed commercial terms unfairly affect publishers and other businesses that rely on its platforms.

The investigation focuses on proposed contractual provisions that could allow Meta to collect content from the websites of businesses using its services and use that material to develop its own products, including artificial intelligence (AI) features.

The CMA is examining whether requiring businesses to accept these conditions could amount to an abuse of a dominant market position under the Competition Act 1998.

No infringement has been established. Meta paused the rollout of the proposed terms on 28 October 2026, pending consultation with industry groups.

For publishers, digital platforms and other content-driven businesses, the investigation raises important questions about commercial contracts, intellectual property rights, AI content licensing and the bargaining power of large technology platforms.

Why is the UK CMA investigating Meta?

According to the CMA’s announcement, Meta planned to introduce revised commercial terms affecting businesses that use its platforms and services.

The proposed conditions could allow Meta to access content from publishers’ and businesses’ websites and use it to develop or provide its own products and services, including AI features.

The regulator is concerned that affected businesses may have limited choice over whether their content is used in this way.

The central legal question is whether Meta holds a dominant position in a relevant UK market and, if so, whether imposing these terms would constitute an abuse of that position.

The investigation follows concerns raised by stakeholders, including the News Media Association and Movement for an Open Web.

The CMA has not concluded that Meta is dominant in the relevant market or that the proposed terms are unlawful. Both issues remain subject to investigation.

What does UK competition law say about unfair commercial terms?

The investigation is being conducted under the Competition Act 1998.

Chapter II of the Act prohibits conduct that amounts to an abuse of a dominant position in a market and may affect trade within the United Kingdom.

An abuse may involve the imposition of unfair trading conditions, depending on the circumstances and the applicable legal test.

However, a commercial term does not automatically breach competition law merely because it is one-sided or commercially disadvantageous.

The CMA must assess matters including the relevant market, the undertaking’s position in that market, the conduct under investigation and whether the legal requirements for establishing an abuse are satisfied.

This distinction is important for businesses reviewing platform agreements. Competition law may provide protection against particular conduct by dominant undertakings, but it does not invalidate every unfavourable contractual provision.

How could Meta’s proposed terms affect publishers and businesses?

1. Control over website content

Businesses invest in producing articles, reports, product descriptions, photographs, research and other digital material.

Contractual provisions that permit a platform to collect and reuse that content may affect how businesses control and commercialise their intellectual property.

Publishers should understand whether their existing agreements authorise particular forms of content access, reuse, adaptation or sublicensing.

They should also distinguish contractual permissions from rights arising independently under copyright law or applicable statutory exceptions.

2. Use of content for artificial intelligence

The CMA’s concerns specifically include the potential use of third-party website content in Meta’s AI products and services.

This raises contractual questions about the scope of licences, permitted AI uses, retention of collected material, sublicensing and whether businesses can restrict particular uses.

For businesses licensing valuable content, the distinction between ordinary platform functionality and AI-related exploitation can be commercially significant.

A licence permitting content to be displayed or distributed does not necessarily have the same scope as a licence expressly permitting AI model development.

The answer depends on the actual contractual language and applicable law.

3. Unilateral changes to platform agreements

Many digital platforms reserve contractual rights to amend their terms.

Businesses should review how amendments are notified, when they become effective, whether continued platform use constitutes acceptance and what termination or objection rights exist.

The CMA investigation highlights the importance of examining these provisions where a business depends heavily on a particular platform for traffic, advertising or audience access.

It does not establish that unilateral variation clauses are inherently unlawful.

4. Bargaining power and platform dependency

Some publishers and digital businesses rely on major online platforms to reach customers and audiences.

Where a platform has substantial market power, businesses may have limited practical alternatives to accepting its standard terms.

Competition law may become relevant when the conduct of a dominant undertaking goes beyond ordinary commercial negotiation and satisfies the legal test for abuse.

The CMA’s investigation will examine whether those conditions exist in this case.

What is the current status of Meta’s proposed commercial terms?

The CMA reports that Meta originally intended to introduce the changes on 30 October 2026.

Following engagement with the regulator, implementation was delayed to 20 November. Meta subsequently announced on 28 October that it would pause the rollout pending consultation with industry groups.

On 30 October, the CMA opened its formal investigation.

The regulator will gather evidence from Meta and affected third parties before determining whether competition law has been infringed.

The investigation itself does not establish wrongdoing, impose a new contractual rule on all digital platforms or create an automatic right to compensation for affected businesses.

Businesses should monitor official CMA announcements rather than assume that the proposed terms have taken effect.

What should businesses review in their commercial contracts?

The investigation provides an opportunity for publishers and digital businesses to examine how their agreements allocate rights over commercially valuable content.

Relevant contractual provisions may include:

  • Content licences: What material may the platform collect, reproduce, modify or reuse?
  • AI-related permissions: Does the agreement expressly permit AI training, model development or other AI uses?
  • Intellectual property ownership: Does the business retain ownership, and what rights does it grant to the platform?
  • Unilateral amendments: Can the platform introduce new content-use rights without express agreement?
  • Termination rights: Can the business end the relationship if the terms change?
  • Sublicensing: Can the platform authorise third parties to use the content?
  • Data protection: Does any processing of personal data create separate obligations under applicable privacy law?
  • Dispute resolution: Which law governs the agreement, and where can disputes be brought?

Businesses should assess these issues in the context of their actual contracts. The CMA has not directed all Meta users to amend their agreements.

Compliance checklist: How businesses can respond

Although the investigation does not create a new statutory compliance deadline, businesses potentially affected by platform content-use terms can take proportionate steps to understand their exposure.

Step 1: Identify relevant platform agreements

Locate the terms governing business pages, advertising services, publishing tools and other platform relationships.

Step 2: Review content-use permissions

Identify clauses dealing with website content, intellectual property, licensing, reuse, data collection and AI-related activities.

Step 3: Check amendment and notification provisions

Determine whether the platform may amend the terms, how notice is provided and what choices are available if a business disagrees.

Step 4: Assess commercially sensitive content

Identify proprietary research, licensed material, premium publications and other content whose reuse may have commercial consequences.

Step 5: Review existing third-party licences

Check whether agreements with contributors, photographers, publishers or content suppliers restrict onward licensing or particular AI uses.

Step 6: Consider data-protection implications

Where personal data is involved, separately assess applicable data-protection obligations. Copyright, competition and data-protection questions should not be treated as interchangeable.

Step 7: Record contractual and operational risks

Document relevant clauses, potential exposure, available controls and any changes the business may wish to negotiate.

Step 8: Monitor the CMA investigation

Track official announcements, any commitments, interim measures or final decisions. Do not assume that an investigation will necessarily result in enforcement action.

Does the investigation mean Meta has breached UK law?

No.

The CMA has opened an investigation because it has concerns about whether Meta’s proposed conduct may infringe competition law.

The regulator must examine the evidence before reaching a decision.

It is therefore inaccurate to describe Meta as having been found guilty of abusing its market position or unlawfully taking publishers’ content.

The investigation concerns proposed commercial terms, and the rollout of those terms has been paused.

What could happen next?

The CMA may continue gathering evidence, engage with the parties and consider the appropriate outcome under its statutory powers.

Depending on the evidence and applicable procedures, possible outcomes could include closure without an infringement finding, commitments, interim measures or formal enforcement action.

These are possible procedural outcomes, not predictions about this particular case.

Businesses should rely on the CMA’s official case updates for developments.

Why this matters for commercial contracts and AI businesses

The investigation illustrates an increasingly important issue in digital contracting: how contractual rights over business content interact with AI development and the market power of large technology platforms.

For businesses, the practical lesson is to understand the rights granted under platform agreements before accepting material changes.

Publishers and content businesses should pay particular attention to licensing scope, AI-related permissions, unilateral variation clauses, intellectual property ownership and exit rights.

The CMA’s investigation may provide further clarity on the competition-law treatment of such terms, but its outcome remains uncertain.

Conclusion

The UK CMA’s investigation into Meta’s proposed commercial terms is a significant development for digital publishers, content businesses and organisations that rely on major technology platforms.

The case raises questions about the use of website content for AI development, contractual bargaining power and the circumstances in which commercial terms imposed by a dominant undertaking may breach UK competition law.

For now, the investigation is open, Meta has paused the proposed changes, and no infringement finding has been made.

Businesses should review their existing contractual exposure and monitor further official developments.

My Legal Pal assists businesses with commercial contract reviews, intellectual property agreements, content licensing arrangements and technology-related legal documentation.

Why is the CMA investigating Meta?

The CMA is investigating whether Meta’s proposed commercial terms could unlawfully impose unfair trading conditions on publishers and other businesses by allowing the use of their website content for Meta’s products, including AI features.

Has Meta been found guilty of breaching UK competition law?

No. The CMA opened its investigation on 30 October 2026. No decision has been made on whether Meta has infringed competition law.

Which UK law applies to the Meta investigation?

The investigation concerns the Chapter II prohibition under the Competition Act 1998, which addresses abuse of a dominant position.

Has Meta implemented the proposed commercial terms?

According to the CMA’s announcement, Meta paused the rollout on 28 October 2026 pending consultation with industry groups.

Does UK law prohibit platforms from using business content for AI?

There is no blanket prohibition established by this investigation. Whether particular content use is lawful depends on applicable intellectual property, contract, data-protection and competition law.

Should businesses update their contracts because of the investigation?

Businesses should review relevant platform terms, content licences, intellectual property provisions and AI-related permissions. The investigation does not itself impose a new contractual amendment requirement.

 

 

Disclaimer: This article provides general legal information and does not constitute legal advice. The investigation remains ongoing, and its outcome should not be presumed.

Team My Legal Pal

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This update is general information, not legal advice, and is provided free without any obligation to notify you of later changes. Check the primary sources and take advice on your own facts before acting.