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Reddit Told Microsoft to Pay for Its Data. Here’s Why Bing Results Disappeared

By TheFinanceBase Team6 min read
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On July 31, 2024, Reddit CEO Steve Huffman said Microsoft, Anthropic and Perplexity should negotiate paid agreements if they wanted continued access to Reddit’s discussions. Reddit then restricted Bing’s crawler, making newer Reddit pages far harder to find in Bing, while Google continued surfacing Reddit through a reported licensing arrangement. Huffman alleged that Microsoft had used Reddit content for AI training, Bing summaries and a Bing API without Reddit’s knowledge; those allegations were not established by a court or an independent technical audit.

The dispute was about more than ordinary web scraping. It exposed a growing fight over whether search engines and AI companies can treat public posts as free raw material—or must pay publishers and obtain permissions when they turn that material into search answers, model-training data or commercial APIs.

What Reddit accused Microsoft of doing

In an interview with The Verge, Huffman alleged that Microsoft had:

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  • used Reddit data to train Microsoft AI systems;
  • summarized Reddit posts in Bing results without Reddit’s knowledge; and
  • made Reddit data available to other search engines through a Bing API.

He also argued that companies were still treating publicly accessible internet content as freely usable even though Reddit considered its discussions a licensable commercial asset. These were Huffman’s claims, not proven findings. Microsoft declined to comment directly on the specific allegations for the article.

Microsoft’s response

Microsoft’s public position had two parts. Jordi Ribas, Microsoft’s head of search, said Reddit had blocked Bing’s crawler, favoring another search engine and affecting Bing-powered services. Separately, Microsoft spokesperson Caitlin Roulston said the company honored instructions from websites that did not want their content used with Microsoft’s generative-AI models.

That is not an admission that Microsoft scraped Reddit unlawfully or trained a model on Reddit against the site’s instructions. It is a statement about Microsoft’s stated policy, alongside a confirmation that Reddit’s crawler restrictions affected Bing.

Anthropic told The Verge that Reddit had been on its crawler block list since mid-May 2024 and that it had not added Reddit URLs since then. Perplexity did not respond to the publication’s request for comment.

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Why Reddit wanted payment

Reddit’s business model was changing. Historically, a publisher often allowed search crawling because indexed pages generated referral traffic. AI summaries and answer engines weaken that exchange: a system can extract the useful discussion, present an answer and send fewer users to the original page.

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Reddit therefore pushed a different bargain: if a company wants to use its large archive of user conversations for search answers, retrieval, model development or other commercial products, it should identify the use and pay for a license. Reddit had already announced data-access agreements with Google and OpenAI. The commonly reported value of the Google arrangement was approximately $50 million per year, although the cited coverage did not disclose a complete public contract. The OpenAI deal’s price was not publicly disclosed.

Reddit spokesperson Tim Rathschmidt told The Verge that the agreements did not grant exclusive use cases. That means Google was not officially given an exclusive legal monopoly over Reddit data. In practice, however, Google could continue showing current Reddit results while Bing’s direct crawling was restricted, creating an exclusive-looking user experience.

Why Reddit disappeared from Bing

Reddit announced on June 25, 2024, that it would update its robots.txt file with high-level instructions about which third parties could crawl the site. After the change, newer Reddit pages became substantially less visible or absent in Bing. Older indexed links could still remain, so this should not be described as a permanent removal of every Reddit URL.

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The practical result was straightforward: users searching Bing for current Reddit discussions had fewer results, while Google remained the more reliable route in the immediate aftermath. The change could also affect search engines and services that rely on Bing’s index.

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Robots.txt is a crawler instruction, not a complete legal answer

robots.txt is a publicly readable file that tells compliant crawlers which areas a site does or does not want fetched. Bing documents its crawler controls through Bing Webmaster Tools.

It does not automatically decide copyright, contract or privacy questions. A robots.txt rule:

  • requests particular crawler behavior;
  • does not retroactively determine whether earlier copying was lawful;
  • may not control authenticated API access, caches, licensed datasets or third-party copies; and
  • does not identify every downstream use of material already collected.

Reddit’s help documentation also distinguishes robots.txt rules for search engines from its separate Data API rules. Blocking a crawler is therefore one technical control, not a universal enforcement mechanism.

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Scraping, indexing, summarizing and training are different

Activity What happens Why permission can differ
Crawling A bot fetches pages. It is a technical access decision.
Indexing A search engine stores information so pages can be discovered. A publisher may allow links while limiting other uses.
Search presentation or summarization A system displays or synthesizes information in an answer. It can reduce clicks and raise attribution, display and licensing questions.
Model training Data influences development or tuning of an AI model. This is a different technical and potentially contractual use from indexing.
API redistribution Data is supplied to another customer or service. Terms may restrict redistribution, retention or commercial reuse.

A company might be allowed to crawl pages for links but not train a model on their contents. Conversely, a negotiated data license might permit controlled retrieval while prohibiting general-purpose training. Microsoft’s Bing API legal terms say users must not use responses for websites whose content is restricted, including where a crawler has been blocked through robots.txt.

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Public does not mean unrestricted

The dispute also reflects two competing assumptions. Microsoft AI executive Mustafa Suleyman was reported as describing public internet data as “freeware.” Reddit’s position was that public visibility does not eliminate the need for permission, attribution or compensation.

The legal answer can vary by jurisdiction and facts, including copyright, contract, privacy, database rights, terms of service and the exact technical use. Neither slogan settles every case. Nor does a search license automatically authorize every AI-training or redistribution use.

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What users and publishers stood to lose

For users, the immediate cost was poorer discovery of current Reddit discussions on Bing and services built on Bing’s index. People who preferred Bing, privacy-focused search alternatives or AI tools using Bing could be pushed toward Google or toward Reddit’s own site.

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For Reddit, blocking or licensing access offered potential revenue, more visibility into data use and leverage to negotiate limits on summaries, retention, attribution and training. The trade-offs included less referral traffic, weaker discovery for smaller communities and the technical difficulty of managing multiple crawlers, APIs, caches and previously collected datasets.

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For publishers generally, the episode challenged the old assumption that search traffic is sufficient compensation for crawling. If an AI product answers a question without sending a click, a publisher may seek a direct data license instead.

What Reddit’s current API rules say

Reddit’s Data API terms, revised July 20, 2026, show that the controlled-access approach continued:

  • API access is a revocable license;
  • Reddit reserves the right to charge fees;
  • commercial use, research beyond rate limits or uses not expressly permitted may require a separate agreement; and
  • using User Content to train an AI or machine-learning model requires express permission from applicable rights holders.

The terms also say User Content remains owned by users. It is therefore inaccurate to say that Reddit owns every post outright or that a Reddit-wide license automatically resolves every individual creator’s rights.

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What remains unresolved

The available reporting does not establish whether Microsoft later reached a Reddit licensing agreement, whether a settlement occurred, or whether Bing’s access was permanently changed. It also does not prove every element of Huffman’s allegations. Questions about individual users’ rights, AI training, search summaries and the legal force of robots.txt remain fact- and jurisdiction-specific.

As of August 18, 2026, the clearest conclusion is that Reddit used crawler restrictions and licensing negotiations to challenge the economics of free web access. The Microsoft confrontation became an early, visible example of a broader question: when search and AI companies turn public conversations into products, who controls that data—and who gets paid?

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Written by TheFinanceBase Team

The Team behind TheFinanceBase.

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