- European Commission launches in-depth investigation into Meta
- WhatsApp’s AI policy could hamper competition from AI chatbots
- Meta faces $16.5 billion fine
The European Commission has launched a formal antitrust investigation into Meta into whether its WhatsApp AI policy restricts competition by blocking competing AI chatbot providers.
Europe’s case covers most of the bloc, except for Italy, which launched its own investigation separately.
Under Meta’s updated WhatsApp Business API terms, third-party AI chatbots are prohibited from being distributed via WhatsApp if providing AI is their primary service.
WhatsApp’s AI policy has troubled the European Commission
The EU fears that Meta will abuse its dominant market position to favor its own Meta AI over its competitors. Some developers have already filed complaints, saying 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 that European citizens and businesses can fully benefit from this technological revolution and act to prevent dominant digital operators from abusing their power to oust innovative competitors,” wrote Teresa Ribera, Executive Vice-President of the European Commission for a Clean, Fair and Competitive Transition.
The investigation could lead to interim measures, suspending Meta’s policy before the final decision is made. 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 profits.
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 is putting pressure on our systems that they were not designed to support,” a Meta spokesperson said, calling the allegations “baseless.”
“Even so, the AI space is very competitive and people access the services they want in a variety of ways, including app stores, search engines, messaging services, partnership integrations, and operating systems.”
The European Commission promises to carry out a “thorough investigation” as a priority.
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