Meta to allow AI rivals on WhatsApp in bid to stave off EU action

Meta to Permit AI Rival Chatbots on WhatsApp in Response to EU Pressure

By Foo Yun Chee

Meta's Response to EU Antitrust Concerns

Background and Regulatory Pressure

BRUSSELS, March 5 (Reuters) - Artificial intelligence rivals will be allowed on WhatsApp for a year, Meta Platforms said, aiming to head off a possible temporary order from EU antitrust regulators after complaints from competitors shut out of the messaging service.

The European Commission, the EU's competition enforcer, last month threatened interim measures to prevent potential serious and irreparable harm to rivals after Meta blocked them from WhatsApp, mirroring moves by Italy's watchdog in December.

Meta's New Policy for AI Chatbots

Meta has now told the Commission it will let rival AI chatbots access WhatsApp for a fee. The company barred them on January 15, allowing only its Meta AI assistant on the service.

Temporary Access and Regulatory Process

"For the next 12 months, we'll support general purpose AI chatbots using the WhatsApp Business API in Europe in response to the European Commission's regulatory process," a Meta spokesperson said.

"We believe that this removes the need for any immediate intervention as it gives the European Commission the time it needs to conclude its investigation."

Commission's Review and Broader Investigation

The Commission said it was analysing how Meta's changes might affect both its interim measures review and its broader antitrust investigation.

Industry Reactions and Ongoing Investigations

Meta's Position on Chatbot Integration

Meta has previously said the rise of chatbots on its platforms strains its systems and that other channels exist for AI providers, including app stores, search engines, email services, partnership integrations and operating systems.

Developments in Italy and Brazil

Meta allowed rival chatbots onto WhatsApp in Italy in January after an order from the Italian antitrust authority, which is still investigating.

Meta said its policy changes will also apply in Brazil after a court on Wednesday reinstated an injunction from the country’s antitrust authority that another court had suspended in January. The Brazilian case is similar to the EU and Italian ones.

Competitor Criticism

Concerns from The Interaction Company

The Interaction Company of California, developer of the Poke.com AI assistant and a complainant to EU and Italian regulators, urged Brussels to impose an interim order on Meta.

"What Meta presents as good-faith compliance is in reality the opposite. The company is now introducing vexatious pricing for AI providers that makes it just as impossible to operate on WhatsApp as the outright ban did," its CEO Marvin von Hagen said.

"The so-called Italian 'solution' is thus no solution at all. It simply replaces one anti-competitive restriction with another," he said.

(Reporting by Foo Yun Chee. Editing by Mark Potter)