eu investigating meta over policy change that bans rival ai chatbots from whatsapp
Meta Faces EU Antitrust Probe Over WhatsApp AI Chatbot Policy
Meta’s decision to exclusively offer its own Meta AI chatbot through WhatsApp is drawing scrutiny from European competition regulators.
The European Commission announced on Thursday the commencement of an antitrust investigation into Meta’s restriction of other AI firms from utilizing WhatsApp’s business tools to provide their own AI chatbot services to users.
Policy Changes and Their Impact
In October, WhatsApp modified its business API policy, effectively prohibiting general-purpose chatbots from operating within the application.
The company stated that the API was not intended as a distribution platform for chatbots, and this policy change will take effect in January.
This alteration will impact the availability of AI chatbots developed by companies such as OpenAI, Perplexity, and Poke on the platform.
Exemptions to the Policy
It’s important to note that this policy does not affect businesses currently employing AI to provide customer support via WhatsApp.
For example, a retailer utilizing an AI-powered customer service bot will continue to have API access.
The prohibition specifically targets AI chatbots like ChatGPT, preventing their distribution through the WhatsApp API.
EU Concerns Regarding Competition
The EU’s executive arm expressed concern that the new policy could “prevent third-party AI providers from offering their services through WhatsApp within the European Economic Area (EEA).”
The Commission highlighted that competing AI providers may be hindered from reaching their customer base through WhatsApp.
Conversely, Meta’s own AI service, Meta AI, will remain accessible to users on the platform.
Statements from European Commission Officials
Teresa Ribera, executive vice-president for Clean, Just and Competitive Transition at the European Commission, emphasized the importance of fostering innovation in the AI sector.
“AI markets are experiencing rapid growth in Europe and globally,” Ribera stated. “We must guarantee that European citizens and businesses can fully benefit from this technological advancement.”
She further added, “We need to act to prevent dominant digital companies from misusing their position to stifle innovative competitors.”
Ribera indicated that the investigation will determine if Meta’s new policy violates competition rules and whether swift action is necessary to prevent potential harm to competition within the AI landscape.
Potential Penalties for Non-Compliance
Should Meta be found in violation of EU antitrust regulations, the company could face a fine of up to 10% of its global annual revenue.
Additionally, the Commission may implement further corrective measures.
WhatsApp’s Response
WhatsApp has dismissed the EU’s claims as “baseless,” asserting that users have ample alternative avenues to access competing AI chatbots.
A WhatsApp spokesperson explained that the influx of AI chatbots on their Business API has placed a strain on systems not originally designed to accommodate such demand.
The spokesperson also noted that the AI market remains highly competitive, with users able to access services through various channels, including app stores, search engines, email, partnerships, and operating systems.