Meta Updates Terms Of Service To Expand Data Collection

Media companies and legal professionals are criticizing Meta's updated commercial terms, which they see as an attempt to collect more data at the expense of site owners. According to AdExchanger, this move may also help Meta avoid paying AI licensing fees. The new terms have raised concerns about the company's market power and its impact on the online publishing industry.

The updated terms of service, set to take effect on October 30, will allow Meta to scrape content from all websites linked on its platforms, including Facebook and Instagram. This change has sparked concerns among site owners, who may not want their content used to train Meta's AI models. There is no opt-out option for businesses, except to stop advertising with Meta altogether.

Meta claims that the update consolidates existing policies into one place and does not change any rules. However, some legal experts disagree, arguing that the new language may create loopholes for Meta to bypass other blocking instructions. This could have significant implications for site owners and their ability to control their online content.

The News/Media Alliance has spoken out against the new terms, calling them an abuse of Meta's market power. The alliance's president and CEO, Danielle Coffey, has expressed strong opposition to the update, citing concerns about its impact on the publishing industry. Other experts, such as media and intellectual property attorney Matt Topic, have also raised concerns about the potential consequences of the new terms.

The update comes as the online publishing industry is facing significant changes, including a decline in search traffic. According to AdExchanger, some publishers are seeing a shift towards social commerce, with British news publisher The Independent reporting that its social-commerce revenue has surpassed its SEO-based commerce revenue. This trend may be driven by a decline in search traffic, rather than an increase in social commerce.

The decline of search traffic has significant implications for the publishing industry, with some experts arguing that the old business model of buying and earning traffic from search engines is no longer viable. Instead, publishers are investing in new areas, such as AI, creator-led studio work, ecommerce, and memberships. This shift may require publishers to adapt their strategies and find new ways to reach their audiences.

The tension between preserving data value and licensing it for revenue is not unique to the publishing industry. Other companies, such as ecommerce sellers and real estate brokerages, are also grappling with this issue. As AI agents become more prevalent, companies must decide whether to integrate with them and risk potential drawbacks, or resist them and potentially miss out on sales opportunities.