Facebook states that artists are permitted to perform gigs and covers of songs they don’t own the copyright to in both stories and livestreams.
“Music in stories and traditional live music performances (e.g., filming an artist or band performing live) are permitted.”
However, Facebook is putting a limit on the number of recorded tracks used in video content.
“The greater the number of full-length recorded tracks in a video, the more likely it may be limited.”
Facebook recommends that users use shorter clips of recorded music similar to what’s seen on TikTok. As well, there should “always be a visual component to your video” and recorded music “should not be the primary purpose of the video.”