Key Points
- Brazil’s antitrust regulator, CADE, is investigating Meta’s new rules for WhatsApp Business.
- The investigation was launched after complaints from AI chatbot providers.
- CADE has suspended the new terms, which banned third-party AI chatbots, while it investigates.
- The regulator is concerned about potential anti-competitive practices. WhatsApp says the chatbots were overloading its systems.
Brazil’s antitrust regulator, CADE, has launched an investigation into Meta’s new rules for its WhatsApp business tool. The agency announced on Monday that it is also temporarily suspending the new terms while it looks into potential anti-competitive practices.
The entire dispute concerns AI chatbots. In October, WhatsApp introduced new rules that effectively banned third-party AI chatbot providers from using its WhatsApp Business Solution. This move angered several companies that had built their businesses on providing AI-powered customer service bots for the popular messaging app. They filed a complaint with CADE, arguing that Meta was using its dominant position to shut them out of the market unfairly.
CADE seems to agree that there’s a problem. The regulator said the new terms could create an anti-competitive environment, particularly given AI tool providers’ access to WhatsApp’s massive user base.
WhatsApp, for its part, says the claims are “fundamentally wrong.” A company spokesperson said the rise of AI chatbots was overloading their systems, which “were not designed for this type of support.”
This is a significant move by the Brazilian regulator, and it could have major implications for how Meta is allowed to operate its business services in one of its largest markets.
The temporary suspension of the new rules means that, for now, AI chatbot providers can continue to operate on WhatsApp. The investigation will now determine if that will be a permanent solution.
