After Europe, WhatsApp will let rival AI companies offer chatbots in Brazil

Meta has taken a significant step by permitting competing AI companies to introduce their chatbots on WhatsApp for Brazilian users, following a similar move for European users just one day prior. This decision comes after Brazil’s antitrust authority, CADE, ruled against Meta, rejecting the company's appeal to halt a previous order that prohibited third-party AI chatbots on its platform. In its ruling, CADE emphasized the importance of WhatsApp in Brazil's instant messaging landscape, stating that the conditions warranted maintaining the preventive measure. Councilor Carlos Jacques noted that there was substantial legal justification for the ruling, as banning third-party chatbots could harm competition within the market. In response to the ruling, Meta announced it would enable third-party AI chatbot providers to utilize its WhatsApp Business API for a fee, wherever legally mandated. Starting March 11, the company plans to charge $0.0625 per non-template message sent in Brazil. A Meta spokesperson explained, "Where we are legally required to provide AI chatbots through the WhatsApp Business API, we are introducing pricing for the companies that choose to use our platform to provide those services." This policy shift was initially proposed by Meta last October, triggering a wave of antitrust investigations, particularly because the company had its own AI chatbot, Meta AI, integrated into WhatsApp. Meta has argued that its WhatsApp Business API was not originally designed for AI chatbots, citing strain on its systems as a concern. While Meta's decision to permit third-party chatbots in specific regions is a response to regulatory pressures, developers have expressed hesitation regarding the high costs associated with the new pricing structure. Zapia, one of the companies that lodged a complaint with CADE, welcomed the decision, emphasizing the need for competition and innovation. In a statement, Zapia asserted, "We believe people should be free to choose the AI tools they use, and innovation only thrives when the platforms people rely on every day remain open. We will continue challenging these restrictions across the rest of Latin America, and we now look forward to seeing how Meta adapts its policies in Brazil to comply with the decision."