WhatsApp exempts Brazil and Italy from controversial AI chatbot ban amid antitrust scrutiny

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WhatsApp has carved out exemptions for Brazil and Italy from its new policy blocking rival AI chatbots on its platform. The move follows regulatory orders from both countries' competition authorities investigating Meta for potential abuse of market power. The policy, which affects general-purpose chatbots like ChatGPT and Grok, takes effect January 15 with a 90-day grace period for developers.

WhatsApp Reverses Course on AI Chatbot Restrictions

WhatsApp is allowing AI providers to continue offering their chatbots to users with Brazilian phone numbers, just days after Brazil's competition regulator ordered the company to suspend its controversial new policy

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. The policy bars third-party, general-purpose AI chatbots from being offered on the app via its WhatsApp Business API. Meta informed developers that they no longer need to notify users with Brazilian phone numbers (country code +55) of any changes or cease offering their services, according to a notice seen by TechCrunch

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Source: TechCrunch

Source: TechCrunch

This Brazilian exemption mirrors a similar carve-out Meta previously granted to Italy after the Italian watchdog AGCM ordered the company to suspend its proposed chatbot ban in December. Phone numbers with an Italian country code (+39) are currently exempt from WhatsApp's updated terms of service, which take effect on January 15

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Regulatory Scrutiny Intensifies Over Anti-Competitive Policy

The policy impacts general-purpose chatbots like ChatGPT and Grok on the platform, though it does not prevent businesses from providing customer service via bots within WhatsApp to their customers

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. Under the new terms, Meta is providing a 90-day grace period starting January 15 to developers and AI providers, mandating them to cease responding to user queries on the chat app and notify users that their chatbots won't work on WhatsApp.

Brazil's competition regulator is investigating whether Meta's terms are exclusionary to competitors and unduly favor the Meta AI assistant, the company's own chatbot integrated into WhatsApp last year

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. AGCM is investigating Meta for suspected abuse of market power following complaints from rivals. The European Commission has also opened an antitrust investigation into whether Meta abused its market dominance by blocking rival AI chatbots on WhatsApp, though it has not issued any interim order

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Source: Reuters

Source: Reuters

Industry Pushback Against Limited Exemptions

The Interaction Company of California, which developed AI assistant Poke.com and filed complaints with both Italian and EU competition regulators, criticized Meta's approach to exemptions. "Meta's move to keep enforcing its new WhatsApp API policy - shutting out AI rivals like Poke.com while only carving out +39 numbers - is deeply disappointing," said Marvin von Hagen, co-founder and CEO

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. Von Hagen argued that since the Italian authority found Meta's conduct to be "at first glance anti-competitive under EU law," Meta should have suspended the policy worldwide rather than creating country-specific carve-outs

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Meta Defends Technical Limitations

Meta has consistently maintained that AI chatbots strain its systems, which were designed for different uses of its business API. "These claims are fundamentally flawed," a WhatsApp spokesperson said in response to the Brazilian probe. "The emergence of AI chatbots on our Business API put a strain on our systems that they were not designed to support. This logic assumes WhatsApp is somehow a de facto app store. The route to market for AI companies is the app stores themselves, their websites and industry partnerships; not the WhatsApp Business Platform"

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Blocking other AI providers' access to WhatsApp would potentially boost Meta's own chatbot and virtual assistant Meta AI, which was integrated into the platform last year. Meta has stated that people who want to use different chatbots can do so outside WhatsApp

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. As regulatory scrutiny continues across multiple jurisdictions, the outcome of these investigations could determine whether Meta faces broader restrictions on blocking competing AI chatbots or must implement more extensive exemptions beyond Brazil and Italy. Third-party developers and AI providers will be watching closely to see if other competition regulators follow suit with similar interim measures.

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