Meta Accused Of Using WhatsApp To Crush AI Rivals In Italy, Here Is All We Know So Far

Italy’s antitrust watchdog has expanded its investigation into the US-based social media giant Meta, saying the company may be unfairly blocking competition by stopping rival AI chatbots from operating

on WhatsApp. The probe, which first began in July 2023, now also includes Meta’s updated business terms and its newly introduced AI features inside WhatsApp.The issue began when Meta updated WhatsApp’s service terms on October 15, 2023. The new policy says that companies whose main product is AI will not be allowed to use WhatsApp’s Business Platform. According to Italy’s competition authority, this move could make it harder for rival chatbot makers to reach WhatsApp’s massive audience -- more than 37 million users in Italy alone -- and could eventually reduce choice for consumers.Meta, however, has denied any wrongdoing. A WhatsApp spokesperson said the claims were unfounded and added that the WhatsApp Business API was never designed to host AI chatbot services. The company also insisted that its updated policy does not impact the many businesses that use WhatsApp today for customer communication and support.Even so, regulators are not convinced. The Italian watchdog has now begun formal procedures to consider interim measures against Meta. These temporary orders could force the company to suspend the new terms and pause deeper integration of Meta AI inside WhatsApp until the investigation is complete.Officials say the restrictions introduced by Meta could potentially distort competition in the fast-growing AI chatbot market, especially since users may find it difficult to switch to other messaging platforms where rival AI tools operate.The investigation is expected to conclude by end-2026. If Meta is found guilty of abusing its dominant position, it could face penalties of up to 10 per cent of its global revenue, as allowed under EU competition rules.In related news, a recently unsealed legal brief accused the social media giant of knowing about serious dangers on Instagram and Facebook but failing to act for years. The lawsuit, filed in the Northern District of California, includes testimony from Vaishnavi Jayakumar, former head of safety and well-being at Instagram. She said that when she joined Meta in 2020, she discovered a shocking '17x strike' policy for accounts linked to sex trafficking.