Meta Loses French Court Appeal in Dispute Over Payments to News Publishers

The Paris Court of Appeal on Thursday rejected Meta’s challenges to two interim orders issued by France’s competition regulator in July, according to Reuters. The measures require the Facebook and Instagram parent to engage in negotiations with media organizations, disclose financial and content-use information, and maintain the visibility of publishers’ material across its platforms.

The ruling adds pressure on Meta as French authorities examine whether its approach to compensating publishers complies with national and European competition rules.

The court found that Meta’s methods for calculating payments to news organizations could potentially constitute an abuse of market dominance, Reuters reported, citing a statement from the court. The finding does not amount to a final determination that the company violated competition law.

Dispute Centers on Publisher Compensation

The case stems from French legislation granting news agencies and publishers rights over the digital reproduction of their journalism. Under the framework, technology companies must obtain authorization to use protected news content and provide compensation to rights holders.

Meta had entered discussions with French media organizations to establish payment arrangements, but negotiations failed to produce new agreements, according to Reuters.

Publishers subsequently sought intervention from competition authorities, raising concerns about the terms governing the use and remuneration of their content.

In July, French regulators imposed temporary obligations designed to protect publishers while the dispute remained unresolved.

Related: Meta Halts Commercial Terms Rollout After Publishers Raise Concerns in EU, UK

Those requirements include providing information about revenue generated by Meta’s social networking services and how protected news material is used. The company must also refrain from worsening the presentation of publishers’ content during negotiations.

Meta challenged the regulatory decisions in August, seeking to overturn the restrictions. Thursday’s ruling leaves the interim measures in place.

Competition Concerns Remain Unresolved

The legal dispute highlights tensions between large digital platforms and traditional media companies over the economic value of journalism distributed through social networks.

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For publishers, access to information about platform revenue and content usage is important in assessing appropriate compensation. For technology companies, such arrangements raise questions about how news content should be valued and which forms of distribution require payment.

The French court’s decision focuses particularly on whether Meta’s compensation methodology could raise concerns under competition law.

According to Reuters, the court determined that the company’s practices could fall within prohibitions against abusing a dominant market position under both French and European legislation.

The ruling strengthens the regulator’s ability to enforce temporary safeguards but does not resolve the underlying dispute over the amounts publishers should receive.

Meta Expresses Disappointment

Meta said it was disappointed by the court’s decision but indicated that it would continue complying with the regulatory requirements.

A company spokesperson told Reuters that Meta was reviewing its options while remaining committed to negotiations with publishers.

The spokesperson also said the company expected media organizations to participate constructively in the process.

Meta’s response leaves open the possibility of further legal action, although the company has not announced a specific next step.

The decision underscores the regulatory challenges facing major technology companies in Europe, where authorities have sought to strengthen the bargaining position of news publishers in their commercial relationships with digital platforms.

Source: Reuters