EU Probes Meta for Banning Competing AI Chatbots on WhatsApp
Meta’s recent policy change on WhatsApp has drawn scrutiny from European regulators. On Thursday, the European Commission announced an antitrust investigation into Meta’s decision to restrict competing AI chatbots on its platform. This investigation comes in response to WhatsApp’s updated business API policy, which prohibits general-purpose chatbots from using the app’s features.
Details of the Investigation
The new policy, set to take effect in January, will block AI chatbots from companies such as OpenAI and Perplexity. However, customer service bots used by businesses will still be permitted. This means that while retailers can utilize AI for customer support, popular AI chatbots like ChatGPT will not be allowed on the platform.
EU Concerns
The European Commission expressed concerns that this policy could hinder third-party AI providers from delivering their services in the European Economic Area (EEA). The Commission stated that with Meta’s new approach, competing AI providers might be unable to reach potential customers through WhatsApp. This could significantly stifle innovation in the AI market.
Statement from the European Commission
Teresa Ribera, an executive vice-president at the European Commission, highlighted the importance of a fair marketplace for AI services. She stated, “AI markets are booming in Europe and beyond. We must ensure European citizens and businesses can benefit fully from this technological revolution.” Ribera emphasized that the investigation aims to assess whether Meta’s policy violates competition rules and prevent any possible harm to competition in the AI sector.
Potential Consequences for Meta
If Meta is found in violation of EU antitrust laws, it could face penalties of up to 10% of its global annual revenue. Additional measures may also be imposed by the Commission in response to the violation.
WhatsApp’s Response
WhatsApp has dismissed the EU’s claims as “baseless.” A spokesperson for the platform asserted that customers still have numerous alternatives for accessing rival AI services. They stated, “The emergence of AI chatbots on our Business API puts a strain on our systems that they were not designed to support.” They further noted that the AI sector remains highly competitive, with users having multiple avenues to access AI chatbots, including app stores and search engines.
- Policy Change Effective: January 2024
- Potential Penalty for Meta: Up to 10% of global annual revenue
- Key Competitors Affected: OpenAI, Perplexity, Poke
The unfolding situation highlights the tensions between large tech companies and regulatory authorities, particularly in the rapidly evolving AI industry. As the investigation progresses, it will be crucial to monitor its implications for both Meta and the wider AI marketplace.
