Reddit uses AI startup Anthropic for breach of contract, 'unfair competition'

Reddit has sued AI startup Anthropic, accusing it of repeatedly accessing Reddit’s data without authorization, violating data policies, and engaging in unfair competition. The lawsuit claims Anthropic’s actions undermine user privacy, breach contractual agreements, and harm the platform’s ecosystem, despite Reddit’s repeated requests to cease data scraping.

Reddit has initiated a legal action against the AI startup Anthropic, accusing the company of wrongful use of Reddit’s data. The lawsuit centers on allegations that Anthropic has violated Reddit’s data policies and breached contractual agreements. Reddit claims that Anthropic’s actions constitute unfair competition and have infringed upon their rights by accessing and using their data without proper authorization.

According to Reddit, their public content policy explicitly outlines restrictions on how third parties can utilize Reddit content. These policies are designed to protect user privacy and ensure that data is used ethically and within agreed-upon boundaries. Reddit emphasizes that they have taken steps to enforce these policies, including rights to request the deletion of data that is used downstream by third parties.

The lawsuit details that despite Reddit’s repeated requests for Anthropic to cease accessing their data, the startup continued to do so. Reddit reports that Anthropic has accessed or attempted to access Reddit data over 100,000 times, even after publicly stating they would stop. This persistent data scraping is described as unlawful and a blatant disregard for user privacy and Reddit’s rights.

Reddit characterizes Anthropic’s actions as an unlawful attempt to profit from Reddit’s data, which they argue undermines the trust and privacy of their users. The company asserts that such behavior not only breaches contractual obligations but also harms the broader ecosystem of content creators and users who rely on Reddit’s platform.

Following the news of the lawsuit, Reddit’s shares experienced a modest increase of about 6%. The company has stated that they have reached out to Anthropic for comment and plan to provide further updates as the situation develops. The case highlights ongoing tensions between data privacy, AI development, and the use of user-generated content in the tech industry.