The European Union (EU) has warned Meta over a fresh antitrust clash after European regulators said they may step in to stop Meta Platforms from blocking rival AI services on WhatsApp.
The EU has issued formal charges and signaled possible interim measures while it probes suspected abuse of a dominant market position. According to the Commission, it has issued a statement of objections to Meta.
Regulators move to protect competition in AI
The EU alleges that Meta’s January policy, which restricts the use of only its Meta AI Assistant on WhatsApp, will potentially damage competing products prior to the conclusion of investigations.
“What we are focused on doing is ensuring that we have effective competition in this innovative and competitive sector, so that we can prevent large tech platforms from using their dominant position to create an inequitable advantage for themselves,” stated EU Antitrust Commissioner Teresa Ribera.
The proposed actions are consistent with a similar initiative taken by Italy’s competition authority late last year, highlighting the coordinated effort among EU member nations’ competition agencies on digital markets.
The Italian watchdog ordered Facebook parent company Meta Platforms to suspend a policy that excludes rival AI chatbot services from messaging on WhatsApp.
According to reports, the social media giant risked distorting competition on the market for AI chatbots in Italy, prompting regulators to issue an interim order against the company.
Meta is already facing a probe by the EU for possible breach of the bloc’s competition rules after the social media company announced in October a policy that prohibited AI providers from using a tool allowing businesses to reach customers via WhatsApp when AI is the main service offered.
Meta defends WhatsApp policy and AI access
Meta has refuted any possibility of intervention by reasoning that the Commission has misinterpreted how AI-powered services are delivered to users.
According to one spokesperson for Meta, “there are several different AI platforms and there are various means available to the end user of accessing an AI platform – through app stores, operating systems and devices, through the Internet using a browser, and via partnerships with companies.”
In addition, Meta rejected the basis upon which the case was filed, stating that: “The Commission mistakenly believes that the WhatsApp Business API is a significant channel of distribution with respect to chatbots.”
The US-based technology company has claimed that the rollout on January 15 was intended to improve the overall user experience and not prevent other companies from benefiting from the successful launch of this product.
Now, global scrutiny is shaping investigation. While in the EU, the Commission has shown its commitment to enforcing antitrust rules, and has been publicly criticized by the US for taking a hardline stance on the antitrust issues faced by US tech companies; within other countries, there have been divergent outcomes.
For instance, a court in Brazil last month issued an injunction suspending a measure of the Brazilian antitrust authority against Meta in relation to the same subject matter.
In the EU, the Commission stated that any interim measures relate to Meta’s right to challenge and defend itself, thus leaving the door open for swift action from the regulator.
Source: https://www.cryptopolitan.com/eu-tells-meta-not-to-stop-rivals-on-whatsapp/
