EU Investigates Meta’s WhatsApp AI Policy Change

Meta changed its WhatsApp Business API policy in October. The new rules ban general-purpose AI chatbots from the platform. The policy is set to take full effect next month. According to Reuters, this specifically targets services like ChatGPT and Perplexity AI.

These chatbots have been accessible to users through WhatsApp. The new policy would block their distribution. However, Meta’s own AI service, called Meta AI, would remain available. The European Commission stated its concerns clearly this week.

It worries the policy may prevent third-party AI providers from operating. They would be blocked from reaching customers on WhatsApp in Europe. This gives Meta’s own AI an unfair advantage, regulators argue. The investigation will determine if this violates EU competition law.

Potential Fines and Broader Market Impact

If found guilty, Meta faces severe penalties. The company could be fined up to 10% of its global annual revenue. The Commission could also impose corrective measures. This probe is part of a larger scrutiny of Big Tech’s control over emerging AI markets.

An executive vice-president for the Commission commented on the case. Teresa Ribera said AI markets are booming globally. She stated the EU must ensure citizens and businesses benefit fully. The goal is to prevent dominant firms from crowding out innovative competitors.

WhatsApp has defended its policy change. A company spokesperson called the EU’s claims “baseless.” They argued the Business API was not designed to support such AI chatbots. The spokesperson noted people have many other ways to access rival AI services.

This antitrust investigation highlights a critical clash. Regulators are drawing a line in the sand over the WhatsApp AI chatbot ban. The outcome will signal how aggressively Europe will police Big Tech’s power in the new AI economy.

Thought you’d like to know

Q1: What exactly did Meta ban on WhatsApp?

Meta banned general-purpose AI chatbots from using the WhatsApp Business API. This means services like ChatGPT can no longer be distributed to users through the app. The policy does not affect AI used for specific business customer service.

Q2: Why is the European Commission investigating?

The Commission suspects Meta is abusing its dominant market position. By banning rivals, Meta’s own AI chatbot gets preferential access to WhatsApp’s vast user base. This could illegally stifle competition in the growing AI sector.

Q3: What happens if Meta is found guilty?

The company could face a massive fine. Penalties may reach 10% of Meta’s total global annual turnover. The EU could also force Meta to change its WhatsApp API policy.

Q4: When will the investigation conclude?

There is no fixed timeline for EU antitrust probes. These investigations are often complex and can take many months or even years to complete. The Commission has stated it will act quickly if needed to prevent harm.

Q5: Can businesses still use AI on WhatsApp?

Yes. The ban targets general-purpose AI chatbots for consumers. A retail or banking business can still use AI-powered tools for customer service on WhatsApp. The policy specifically distinguishes between these use cases.