Steve Huffman Explains Why His Platform Has Started Restricting Content Access For Some, Including Microsoft: 'We Want To Know Where Reddit Data Is Going And What It's Being Used For'

Reddit Inc. RDDT CEO Steve Huffman explained restricting access to its content after he previously called on Microsoft Corporation MSFT, Anthropic, and Perplexity to pay for continue scrapping the site’s data.

What Happened: On Tuesday, during Reddit’s second-quarter earnings call, Huffman responded to a query from Daniel Salmon of New Street Research regarding limitations on content access in some cases, including Microsoft Bing.

Huffman stated that Reddit’s content is extremely valuable. While the company has traditionally allowed search engines to crawl and index its content, changes in the usage of Reddit’s data have necessitated a policy shift.

“We can no longer assume intent for what Reddit’s data is being used for,” Huffman said, adding that Reddit has transitioned from being “default open” to “default blocking crawlers.”

See Also: Alphabet Loses Antitrust Suit Over Google Search Dominance: Report

Huffman went on to say that Reddit remains accessible to users and continues to offer its content for free for non-commercial use. However, a public content policy has been implemented that prioritizes user privacy and limits the use of Reddit data for user identification or ad targeting.

“We want to know where Reddit data is going and what it’s being used for,” he said, underscoring the company’s dedication to data transparency and user privacy.

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Why It Matters: This move by Reddit follows Huffman’s call for companies like Microsoft to pay for scraping the site’s data.

In an interview earlier this month, Huffman expressed concern over the lack of control and knowledge about how Reddit’s data is used and displayed without these agreements. He specifically called out Microsoft, Anthropic, and Perplexity for their reluctance to negotiate, describing the process of blocking these companies as “a real pain in the a**,” reported The Verge.

Meanwhile, on Tuesday, Reddit’s second-quarter earnings report showed a strong quarter with a 54% year-over-year increase in total revenue and a 51% increase in daily active unique users.

Price Action: On Tuesday, Reddit shares closed at $54.36, marking a 4.31% drop. The decline persisted in after-hours trading, with the stock falling another 4.53%, reaching $51.90, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.