EU Launches Probe Into Meta for Potential AI Rule Violations on WhatsApp

The European Commission has initiated a formal investigation into Meta, the parent company of WhatsApp, over concerns that recent changes to WhatsApp's terms of service for business clients may restrict competition in the artificial intelligence (AI) sector. The inquiry centers on Meta's revised policies for its WhatsApp Business Application Programming Interface (API), which are set to become effective for all business users, including existing clients, from mid-January.

According to the Commission, Meta's updated terms prohibit third-party providers from utilizing WhatsApp business solution data for the development, training, or enhancement of machine learning models or AI systems, including large language models. Such restrictions would only allow the use of AI in limited cases, such as customer service chatbots, provided these are merely features and not standalone AI products. Meanwhile, Meta retains unrestricted access for its own AI initiatives, raising concerns regarding potential self-preferential treatment.

The Commission's preliminary assessment suggests that these measures could unfairly limit competitors' ability to develop innovative AI solutions using WhatsApp business data, while allowing Meta to advance its proprietary AI technologies. Officials argue that these practices might undermine fair competition and limit the technological benefits available to European users and businesses. The investigation aims to determine if Meta's actions constitute a breach of EU competition law, particularly regarding the exclusion of rivals in the fast-growing AI market.

Meta has responded to the allegations by stating that the claims lack merit. The company argues that the influx of AI chatbots on its Business API imposes technical strains on its infrastructure, which was not designed for such extensive AI integration. Meta also emphasizes that the digital services landscape is highly competitive, with users having alternative options such as app stores, search engines, email platforms, and partner integrations to access digital services of their choice.

The European Commission has emphasized the importance of ensuring that the ongoing AI revolution benefits all market participants and does not favor dominant players at the expense of innovation and consumer choice. The lead Commissioner for competition stated that the investigation is designed to prevent the exclusion of innovative competitors who might otherwise contribute to the dynamic evolution of AI-enabled business solutions across Europe.

This probe is part of a broader effort by EU authorities to scrutinize the competitive dynamics of the artificial intelligence sector. In recent months, European regulators have intensified their focus on the intersection of digital platforms and AI, seeking to ensure that major technology firms do not use their market position to stifle emerging competition. The regulatory approach has at times led to friction between European and American officials, particularly over the scope and intensity of oversight for large US-based technology companies.

The outcome of this investigation could have significant implications for the development and deployment of AI technologies within the EU. Should the Commission find that Meta's policies breach competition rules, the company could be required to amend its terms and potentially face financial penalties. The case also highlights the growing regulatory attention on how access to data and platform infrastructure can shape the future direction of AI innovation and market competition.

As the investigation proceeds, European businesses and technology providers will be closely monitoring developments, given the potential impact on their ability to leverage WhatsApp and similar platforms for AI-driven products and services. The Commission has reiterated its commitment to fostering a competitive, innovative, and fair digital ecosystem, ensuring that technological advancements are accessible to a broad spectrum of market participants across the European Union.