TL;DR
Brazil's competition authority, CADE, has directed WhatsApp to suspend a rule that blocks third-party AI providers from using the app's Business API and opened an inquiry into whether the change unfairly benefits Meta's own chatbot. The move follows similar probes in the EU and Italy and could prompt Meta to adjust access for specific markets.
What happened
Brazil’s competition regulator, the Conselho Administrativo de Defesa Econômica (CADE), instructed WhatsApp to suspend enforcement of a new policy that prevents external AI companies from offering chatbots via the WhatsApp Business API. CADE has launched an investigation to assess whether the terms Meta introduced for the Business API amount to exclusionary conduct that favors Meta AI over rival providers. Meta updated the Business API rules last October and said the change would take effect on January 15, prompting firms such as OpenAI, Perplexity and Microsoft to indicate their chatbots would no longer operate on WhatsApp under the new terms. Meta’s policy still permits individual businesses to deploy their own chatbots to customers through WhatsApp. Regulators in the EU and Italy have opened similar probes, and Meta has reportedly allowed third-party AI providers to keep offering chatbots in Italy despite the policy change.
Why it matters
- The decision could shape how messaging platforms control third-party AI integrations and set a legal precedent for platform competition.
- Businesses that use WhatsApp’s Business API for customer-facing bots may lose access to external AI tools if the policy is enforced.
- Regulatory scrutiny from multiple jurisdictions increases the likelihood of operational or policy changes by Meta across markets.
- If regulators find anticompetitive behavior, the company could face substantial penalties under some jurisdictions’ antitrust rules.
Key facts
- CADE ordered WhatsApp to pause the enforcement of the new Business API terms and opened an investigation into possible exclusionary conduct.
- CADE said it will investigate whether Meta’s terms unduly favor Meta AI, the company’s chatbot on WhatsApp.
- Meta revised the WhatsApp Business API terms in October and set the new rules to take effect on January 15.
- OpenAI, Perplexity and Microsoft indicated their chatbots would no longer be available on WhatsApp once the policy is enforced.
- Meta’s policy does not forbid businesses from offering their own chatbots to customers on WhatsApp.
- The EU and Italy have launched separate antitrust inquiries into the same WhatsApp policy.
- If the EU finds Meta in breach of its antitrust rules, fines could reach up to 10% of global revenue.
- TechCrunch reported that Meta told AI providers they could continue offering chatbots in Italy despite the new rules.
- Meta has argued publicly that third-party AI chatbots place additional strain on systems built for the Business API’s intended uses.
What to watch next
- Whether CADE’s investigation results in a permanent reversal or modification of Meta’s Business API terms (not confirmed in the source).
- If Meta will formally extend the temporary Italy exception to Brazil and other markets following CADE’s order (not confirmed in the source).
- Outcomes of the EU and Italian antitrust probes and any potential fines or mandated changes to Meta’s policy (not confirmed in the source).
Quick glossary
- CADE: Brazil’s administrative council for economic defense; the national competition authority that enforces antitrust law.
- WhatsApp Business API: An interface that allows companies to integrate WhatsApp messaging into customer service and notification systems.
- Antitrust / Competition probe: A regulatory investigation into whether a company’s behavior restricts competition or creates unfair market advantages.
- Chatbot: Software that uses rules or artificial intelligence to simulate conversation with users, often to provide information or services.
Reader FAQ
What did Brazil’s regulator order WhatsApp to do?
CADE ordered WhatsApp to suspend enforcement of the new Business API terms and opened an investigation into the policy.
Which third-party AI providers were reported affected by the policy?
OpenAI, Perplexity and Microsoft were among the companies that said their chatbots would no longer be offered on WhatsApp under the new terms.
Does the policy prevent businesses from using chatbots on WhatsApp?
No. The policy, as described, still allows businesses to run their own chatbots on WhatsApp for customers.
Could Meta face fines over this policy?
The article notes the EU could impose fines up to 10% of global revenue if it finds a breach, but specific penalties in other jurisdictions are not detailed.
Brazil’s competition watchdog has ordered WhatsApp to put on hold its policy that bars third-party AI companies from using its business API to offer chatbots on the app. The agency…
Sources
- Brazil orders Meta to suspend policy banning third-party AI chatbots from WhatsApp
- Brazil orders Meta to suspend policy banning third-party AI …
- Brazil: Data Protection authority orders Meta to halt …
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