- The European Commission begins an in-depth investigation into Meta
- WhatsApp’s AI policy could be hindering competition from AI chatbots
- Meta could face a fine of 16.5 billion dollars
The European Commission has launched a formal antitrust investigation into Meta over whether its WhatsApp AI policy restricts competition by blocking rival AI chatbot providers.
Europe’s case covers most of the bloc, with the exception of Italy, which launched its own separate investigation.
Under Meta’s updated WhatsApp Business API terms, third-party AI chatbots are prohibited from being distributed through WhatsApp if providing AI is their primary service.
WhatsApp’s AI policy has worried the European Commission
The EU is concerned that Meta may be abusing market dominance to favor its own Meta AI over its rivals. Some developers have already filed complaints alleging that the policy harms competition and innovation.
OpenAI and Microsoft already had to remove their chatbots from the platform after 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 incumbents from abusing their power to displace innovative competitors,” wrote Teresa Ribera, EC Executive Vice President for a Clean, Fair and Competitive Transition.
The investigation could lead to provisional measures, suspending Meta’s policy before a final ruling is issued. 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 earnings.
The company has already found itself in trouble within the EU, paying a €200 million fine under the Digital Markets Act.
“The emergence of AI chatbots in our enterprise API puts pressure on our systems that they were not designed to support,” a Meta spokesperson said, calling the accusations “baseless.”
“Still, the AI space is highly competitive and people have access to the services of their choice in a variety of ways, including app stores, search engines, email services, association integrations, and operating systems.”
The European Commission promises to carry out an “in-depth investigation as a matter of priority.”
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