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Antitrust closes Meta-Siae case: big tech's commitments accepted

Antitrust Authority accepts US group's commitments, ending proceedings opened in April 2023

by Andrea Biondi and Francesco Prisco

L’Agcm chiude il dossier Meta-Siae sull’utilizzo della musica sulle piattaforme social del gruppo statunitense

2' min read

2' min read

Antitrust closes dispute between Meta and Siae. The Italian Antitrust Authority has accepted the commitments presented by the US group, putting an end to proceedings opened in April 2023 following the abrupt break-off of negotiations for the renewal of the licence to use the Italian company's protected musical works on the Facebook and Instagram platforms.

The decision by the Authority, formalised with the measure published in the recently released Bulletin of 12 May, comes after more than two years of complex interlocutions and a market test involving several industry players. The commitments presented by Meta - amended several times on the basis of comments by Siae and the Associazione Fonografici Italiani (Afi) - were deemed suitable to remedy the critical competition issues that emerged during the preliminary investigation.

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In detail, Meta has committed to negotiate in good faith and with defined timeframes, including by entering into interim agreements should the existing licence expire before a new agreement is reached. The possibility of appointing an independent trustee to resolve any negotiation impasses is also provided for, and the sharing of a minimum set of information is guaranteed to facilitate the definition of remuneration.

In terms of objective scope, the commitments concern licences relating to so-called 'Italian Music Rights' and also include - albeit in an ancillary form - user generated content (UGC), as requested by Siae. On the other hand, the collecting society's wish to transform the commitment to negotiate into a real contractual obligation was not accepted, nor was an unlimited temporal extension of the measures, which will remain in force for a period of four years.

For the Antitrust Authority, the closure of the proceedings strikes a balance between the needs of the market and the protection of competition. 'The commitments', the order reads, 'consistently address the concerns outlined and ensure transparency and fairness in future negotiations'.

The case had already attracted considerable media and institutional attention in March 2023, when Meta had removed works protected by Siae from its platforms after the failure to reach an agreement. It was alleged that the American group had abused its economic dependence, claiming behaviour detrimental to the principles of good faith and transparency, also in light of the non-disclosure of economic data relevant to the negotiation.

With the acceptance of the commitments and the subsequent closure of the proceedings, a new phase now opens. This is a key step in a European context in which the regulation of digital markets and the protection of the economic value of creative works represent a decisive test for the balance between technological innovation and authors' rights. There is always the possibility of appealing to the TAR.

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