- The European Commission is launching an in-depth investigation of Meta
- WhatsApp’s AI policy may hamper AI chatbot competition
- Meta could be fined $16.5 billion
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 probe separately.
According to Meta’s updated WhatsApp Business API Terms, third-party AI chatbots are prohibited from being distributed through WhatsApp if the provision of 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 competitors. Some developers have already filed complaints claiming the policy hurts competition and innovation.
OpenAI and Microsoft have 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 take full advantage of this technological revolution and act to prevent dominant digital incumbents from abusing their power to crowd out innovative competitors,” wrote EC EVP for Clean, Just and Competition Transition, Teresa Ribera.
The investigation may lead to interim measures suspending Meta’s policy until the final decision is made. If found guilty, Meta 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 in the EU, coughing up a 200 million euro fine under the Digital Markets Act.
“The advent of AI chatbots on our Business API places a strain on our systems that they were not designed to support,” said a Meta spokesperson, calling the claims “baseless.”
“However, the AI space is highly competitive and people access the services of their choice in a variety of ways, including app stores, search engines, email services, partnership integrations and operating systems.”
The European Commission promises to carry out an “in-depth investigation as a matter of priority.”
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