Formal action taken against WhatsApp following its new decision regarding artificial intelligence
The European Union has launched an antitrust investigation against Meta over its new policy that prohibits third-party artificial intelligence (AI) services from operating within WhatsApp.
WhatsApp had announced updates to its terms of service that ban users from using third-party AI-powered chatbots within the app.
The European Commission said on Thursday that it was concerned these terms could hinder the entry of AI competitors into the WhatsApp market.
The investigation falls under traditional antitrust laws, not the European Digital Markets Act (DMA), which focuses on regulating the dominance of large internet platforms.
Meta launched its AI feature within WhatsApp in European markets last March, after delays due to regulatory complexities.
This feature acts as an intelligent assistant within chats, offering phrase and text suggestions to complete messages.
In Italy, authorities are conducting a separate investigation into Meta over allegations that it abused its dominant position to introduce AI features into WhatsApp without user consent.
Italian authorities have expanded their investigation to include WhatsApp Business's terms of service and new features, arguing that the changes could stifle competition and development in the AI-powered chatbot market.
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WhatsApp declined to comment on the European investigation, stating in its response to the Italian inquiry that the allegations are unfounded. The company pointed out that the introduction of chatbots through its API puts pressure on its differently designed systems.
WhatsApp added that the AI market is highly competitive and that users have multiple options for accessing their preferred services through app stores, search engines, and other platforms.
This investigation follows a series of Digital Markets Act (DMCA) investigations targeting companies like Alphabet (Google), Amazon, and Microsoft regarding search ranking and cloud computing services.
The European Commission has reaffirmed its commitment to enforcing its digital laws despite concerns about potential repercussions from the United States.
Mark Zuckerberg, CEO of Meta, has criticized the European regulations, describing them as burdensome and potentially hindering Europe's progress in the AI race compared to the United States and China.
