EU investigating Meta over policy change that bans rival AI chatbots from WhatsApp

The European Commission is taking action against Meta following the company's recent decision to restrict access to its WhatsApp business tools for rival AI chatbots. On Thursday, the Commission announced it is initiating an antitrust investigation into Meta's move, which effectively bans other AI developers from deploying their chatbots on the popular messaging platform. This policy change, set to take effect in January, prohibits the distribution of general-purpose AI chatbots through WhatsApp’s business API. This means that notable AI services from companies like OpenAI, Perplexity, and Poke may be unable to reach users via the app. However, businesses utilizing AI for customer service on WhatsApp will not face restrictions; for instance, a retailer can still employ an AI-driven customer support bot. The Commission expressed concerns that Meta's policy could hinder third-party AI providers from offering their services within the European Economic Area (EEA). "This change may block competing AI services from accessing customers on WhatsApp, while Meta’s own service, ‘Meta AI,’ continues to be available to users, raising significant competition issues," the Commission stated. Teresa Ribera, the executive vice-president for Clean, Just and Competitive Transition at the European Commission, emphasized the importance of ensuring that European citizens and businesses benefit from the AI boom. She stated, "We must act to prevent dominant digital players from using their power to stifle innovation. This is why we are investigating the legality of Meta’s new policy under competition laws and whether swift action is needed to protect competition in the AI sector." If the investigation concludes that Meta has violated EU antitrust regulations, the company could face fines of up to 10% of its global annual revenue, along with potential additional penalties. In response, WhatsApp has dismissed the EU's claims as unfounded, arguing that users still have numerous alternatives to access competitor AI chatbots. A WhatsApp spokesperson stated, "Our Business API was not designed to support the strain from AI chatbots, but the AI landscape remains highly competitive, and users have various options to access AI services through app stores, search engines, and more."