Brazil’s antitrust regulator, CADE, has ordered WhatsApp to suspend a policy that restricts third-party artificial intelligence (AI) companies from leveraging the platform’s Business API for chatbot services. This directive comes amid concerns that the policy may violate competition laws, prompting CADE to initiate an investigation into the matter.
In a statement, CADE underscored its scrutiny of the updated WhatsApp Business Solution Terms, which were revised by Meta, the parent company of WhatsApp. The regulator expressed apprehension regarding “a possible exclusive anti-competitive conduct arising from the application of the New WhatsApp Terms,” asserting that these terms could unfairly limit competitors’ access while affording an undue advantage to Meta AI, the company’s own chatbot offering on WhatsApp. CADE’s review will examine whether the restrictions imposed by Meta are excessive and distort competition within the rapidly growing AI chatbot market.
The controversy stems from changes introduced by Meta in October 2023, which prohibit third-party companies from offering their own AI chatbots through WhatsApp. Following the announcement, companies such as OpenAI, Perplexity, and Microsoft indicated that their chatbots would no longer be available on the platform after the policy takes effect on January 15, 2024. Meanwhile, Meta has stated that businesses can deploy their own chatbots directly to communicate with customers on WhatsApp.
Regulatory scrutiny of Meta’s new terms is not confined to Brazil. Competition authorities in the European Union and Italy have also launched antitrust investigations into the policy. If EU regulators determine that Meta’s changes contravene competition rules, the company could face penalties of up to 10% of its global revenue.
While Meta has communicated that AI developers may continue offering their chatbots in Italy despite the new rules, similar exemptions or adjustments may be considered for Brazil following CADE’s order. The company has not responded to requests for comment outside of official business hours.
Analysts suggest that the Brazilian case could have significant implications for the digital economy in Latin America. Industry observers note that CADE’s actions may influence how other regulators in the region approach issues related to platform access and competition, as the chatbot market continues to expand rapidly. For businesses that rely on popular messaging applications to deploy AI tools, this regulatory development highlights the importance of monitoring ongoing changes and ensuring compliance with evolving access rules.
As the situation unfolds, the implications of CADE’s investigation and any resulting policies could shape the landscape for AI technologies in Brazil and beyond. With mounting scrutiny from regulators, Meta and other tech companies may need to navigate a complex web of compliance issues as they seek to balance innovation with fair competition.
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