Brazil orders WhatsApp to pause policy blocking third-party AI chatbots

TechCrunch
TechCrunch
10h ago
Brazil’s competition watchdog ordered WhatsApp to suspend a policy that blocks third-party AI companies from offering chatbots via its business API and opened an investigation into possible anti-competitive conduct.
Brazil orders WhatsApp to pause policy blocking third-party AI chatbots
A What happened
Brazil’s competition watchdog 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. CADE opened an investigation to determine whether the policy is anti-competitive and whether it unduly favors Meta AI on WhatsApp. Meta changed the WhatsApp Business API terms in October to ban third-party AI chatbots, with the policy set to go into force on January 15. The European Union and Italy also launched antitrust investigations into the policy, and the EU could fine Meta up to 10% of its global revenue if it finds a breach of antitrust rules.
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Key insights

  • 1

    CADE is examining whether the policy creates exclusivity that favors Meta AI: CADE said it would investigate whether Meta’s WhatsApp Business Solution Terms are exclusionary to competitors and unduly favor Meta AI on WhatsApp.

  • 2

    Meta says the WhatsApp Business API is intended for customer support and updates: A Meta spokesperson said the WhatsApp Business API is meant to help businesses provide customer support and send relevant updates, and Meta said AI chatbots strain systems designed for different uses of the API.

Takeaways

WhatsApp must pause enforcement of its third-party AI chatbot ban in Brazil while CADE investigates whether the policy is anti-competitive.

Topics

Technology & Innovation Artificial Intelligence World & Politics Policy & Regulation Investigations Law & Public Safety Crime & Justice

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