LSE warns Reuters paywall plan breaches Refinitiv deal terms
Reuters has reportedly been warned by the London Stock Exchange Group that its plan to instigate a paywall on its content is in breach of the London bourse’s purchase of data provider Refinitiv.
A letter from the LSE to the news provider, which was reported by Barron’s, says that the plan, which was announced in April, was “not permitted” under the 2018 deal.
Such a move, wrote David Craig, chief executive of Refinitiv, and Andrea Stone, LSEG’s chief customer proposition officer, “would cause Refinitiv significant loss and material and irreparable harm.”
About half of Reuters’ revenue comes from Refinitiv, making the financial data company its biggest client.
As a result of the LSE’s $27bn deal for Refinitiv, which recently completed after extensive regulatory scrutiny, Reuters now owns 15 per cent of LSE.
In a joint statement, LSE and Reuters said: “Just as with any commercial agreement, there are ongoing and private discussions about our business approach and products.
“The foundation of our partnership is strong and we will continue to work together to deliver for all of our customers.”
A subscription to Reuters.com will cost $34.99 a month, the same as Bloomberg’s digital subscription, when it is introduced.