Brazil orders Meta to suspend policy banning third-party AI chatbots from WhatsApp

Core Viewpoint - Brazil's competition authority has mandated WhatsApp to suspend its policy that restricts third-party AI companies from utilizing its business API for chatbot services, initiating an investigation into potential anti-competitive practices by Meta [1][2][3]. Group 1: Investigation and Regulatory Actions - The Brazilian competition watchdog, CADE, is examining whether Meta's new WhatsApp Business Solution Terms are exclusionary and favor Meta's own AI offerings over competitors [2][3]. - CADE's investigation follows similar antitrust inquiries launched by the European Union and Italy regarding Meta's policy changes, which could result in significant fines if violations are found [5]. Group 2: Policy Changes and Implications - Meta revised its terms of use for the WhatsApp Business API in October, prohibiting third-party AI companies from providing chatbots on the platform, effective January 15 [4]. - Despite the new policy, businesses are still permitted to offer their own chatbots within WhatsApp, whether AI-powered or not [4]. - Meta has indicated that AI providers can continue to offer their chatbots to users in Italy, suggesting a potential similar approach in Brazil following CADE's order [6]. Group 3: Company Position and Rationale - Meta has expressed that AI chatbots are placing undue strain on its systems, which were designed for different applications of the business API, and has encouraged users to utilize alternative platforms for different chatbots [8]. - A Meta spokesperson emphasized that the WhatsApp Business API is intended to assist businesses in customer support and relevant updates, focusing on supporting numerous businesses utilizing the platform [9].