Brazil orders Meta to halt policy blocking third-party AI chatbots on WhatsApp

Brazil's antitrust authority has directed WhatsApp to suspend its policy that prevents third-party AI companies from using its business API to offer chatbots on the platform. The regulator has also launched an investigation into whether the policy is anti-competitive.

“According to the investigation, there is evidence of potentially anti-competitive exclusive conduct arising from the application of the new WhatsApp Terms (“WhatsApp Business Solution Terms”) imposed by Meta to regulate access and provision of AI tool providers’ technologies to WhatsApp users,” the Conselho Administrativo de Defesa Econômica (CADE) stated.

CADE said it will examine whether Meta’s terms unfairly exclude competitors and improperly favor Meta AI, the company’s chatbot available on WhatsApp.

In October, Meta updated its terms of use for the WhatsApp Business API, prohibiting third-party AI companies from offering their chatbots on the platform. Companies such as OpenAI, Perplexity, and Microsoft soon noted that after the policy takes effect on January 15, their chatbots will no longer be accessible on WhatsApp. Notably, Meta’s policy does not prevent businesses from creating their own chatbots—whether AI-powered or not—to serve customers within WhatsApp.

CADE’s inquiry follows antitrust investigations launched by the European Union and Italy into the same policy. If the EU finds Meta in violation of its antitrust rules, the company could face fines of up to 10% of its global revenue.

Meta has informed AI providers that they can continue offering their chatbots to users in Italy even after the new rules take effect on January 15, according to a developer notice reviewed by TechCrunch. The company may make a similar decision in Brazil following CADE’s order.

Meta did not immediately respond to a request for comment outside regular business hours.

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The company has consistently argued that AI chatbots are placing strain on its systems, which were designed for different use cases of its business API. Meta has previously stated that users who want to use different chatbots can do so outside of WhatsApp.

“The WhatsApp Business API is designed to help businesses provide customer support and send relevant updates. Our focus is on supporting the tens of thousands of businesses building these experiences on WhatsApp,” a Meta spokesperson said when the company updated the terms in October.