this post was submitted on 12 Jun 2023
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I think Reddit does have a legitimate argument that the scales have tipped and Reddit eating the costs of "whales" abusing their APIs for for-profit use cases without Reddit being compensated at all is fair.
3P apps using the API at no cost while simultaneously monetizing Reddit's content by showing their own ads does seem to be taking advantage.
That said, the way Reddit approached this was so scorched earth and bone headed.
For example. Reddit gets 10s of millions of dollars in free content moderation services from volunteers. The moderators of all their biggest subreddits rely on 3P moderation tools since Reddit's are so poor.
So with the new API policy, they're asking their unpaid moderators to PAY them for the privilege. It's such a slap in the face.
Finally to address the original question, Reddit should absolutely block API consumers who are just training their glorified chat bots to regurgitate plagerized content.