- The European Commission is launching an in-depth investigation into Meta
- WhatsApp’s AI policy could be hampering AI chatbot competition
- Meta could face a fine of $16.5 billion
The European Commission has launched a formal antitrust investigation into Meta over whether its WhatsApp AI policy restricts competition by blocking rival AI chatbot providers.
Europe’s case covers most of the bloc, with the exception of Italy – which launched its own probe separately.
Per Meta’s updated WhatsApp Business API terms, third-party AI chatbots are banned from being distributed via WhatsApp if providing AI is their primary service.
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WhatsApp’s AI policy has troubled the European Commission
The EU is worried that Meta might be abusing market dominance to favor its own Meta AI over rivals. Some developers have already filed complaints claiming that the policy harms competition and innovation.
OpenAI and Microsoft have already had to remove their chatbots from the platform following the introduction of revised terms, updated in October.
“AI markets are booming in Europe and beyond. We must ensure European citizens and businesses can benefit fully from this technological revolution and act to prevent dominant digital incumbents from abusing their power to crowd out innovative competitors,” EC EVP for Clean, Just and Competition Transition, Teresa Ribera, wrote.
The investigation could lead to interim measures, suspending Meta’s policy before the final ruling is given. If Meta is found guilty, it could face fines of up to 10% of its global annual revenue, or $16.5 billion based on its 2024 earnings.
The company has already found itself in trouble within the EU, coughing up a €200 million fine under the Digital Markets Act.
“The emergence of AI chatbots on our Business API puts a strain on our systems that they were not designed to support,” a Meta spokesperson said, calling the allegations “baseless.”
“Even still, the AI space is highly competitive and people have access to the services of their choice in any number of ways, including app stores, search engines, email services, partnership integrations, and operating systems.”
The European Commission promises to carry out an “in-depth investigation as a matter of priority.”
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