The European Commission has launched an antitrust investigation into Meta's recent policy change on WhatsApp, which effectively bans rival AI chatbots from utilizing the platform's business tools. This move, which restricts third-party AI services while allowing Meta AI to operate freely, has raised concerns among EU regulators about potential anti-competitive practices in the rapidly expanding artificial intelligence market.
The European Commission on Thursday said it is initiating the probe into Meta's decision to serve only its own AI chatbot, Meta AI, to WhatsApp users. This action follows WhatsApp's update in October to its Business API policy, which now prohibits general-purpose chatbots from the chat app. WhatsApp stated that its API was not designed to be a platform for the distribution of such chatbots.
This policy change, set to go into effect in January, is expected to impact the availability of AI chatbots from developers such as OpenAI, Perplexity, and Poke on the app.
Notably, the new policy does not affect businesses that use AI to serve customers on WhatsApp. For instance, a retailer running an AI-powered customer service bot will not be barred from using the API. The prohibition specifically targets general AI chatbots like ChatGPT that aim for broader distribution via the API.
In its statement, the EU's executive arm expressed significant concern that the policy may "prevent third-party AI providers from offering their services through WhatsApp in the European Economic Area ('EEA')." The Commission further elaborated:
"As a result of the new policy, competing AI providers may be blocked from reaching their customers through WhatsApp. On the other hand, Meta’s own AI service ‘Meta AI’ would remain accessible to users on the platform."
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition at the European Commission, underscored the importance of fair competition in the burgeoning AI sector.
"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," Ribera stated. "This is why we are investigating if Meta’s new policy might be illegal under competition rules, and whether we should act quickly to prevent any possible irreparable harm to competition in the AI space."
Should Meta be found in breach of EU antitrust regulations, the company could face substantial penalties, including a fine of up to 10% of its global annual revenue. The Commission also reserves the right to impose additional corrective measures on the tech giant.
In response, WhatsApp has dismissed the EU's claims as "baseless," arguing that users have numerous alternative avenues to access rival AI chatbots. A spokesperson for WhatsApp explained in an emailed statement:
"The emergence of AI chatbots on our Business API puts a strain on our systems that they were not designed to support. 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."
