Brazil Steps In on WhatsApp AI Policy
Brazil’s competition regulator has instructed WhatsApp to temporarily suspend a policy that prevents third-party artificial intelligence companies from using its business API to deploy chatbots on the messaging platform. Alongside the order, the watchdog has opened a formal probe to assess whether the policy breaches competition law.
The move marks a significant escalation in regulatory scrutiny of Meta’s approach to AI services on WhatsApp, particularly as the company expands the reach of its own in-house chatbot, Meta AI.
Concerns Over Potential Anti-Competitive Conduct
In a statement outlining the rationale for its action, Brazil’s antitrust authority raised concerns that Meta’s revised terms may unfairly limit competition.
“According to the investigations, there is possible anti-competitive conduct of an exclusive nature that arises from the application of the New WhatsApp Terms (“WhatsApp Business Solution Terms”) imposed by Meta to regulate the access and offer, by providers of artificial intelligence tools, of its technologies to WhatsApp users,” the Conselho Administrativo de Defesa Econômica (CADE) said.
CADE confirmed it will examine whether the updated rules exclude rival AI providers and disproportionately benefit Meta AI, which is integrated directly into WhatsApp.
Policy Change and Industry Impact
Meta updated the WhatsApp Business API terms in October, introducing a ban that prevents third-party AI companies from offering chatbot services on the platform. Following the announcement, several major AI developers — including OpenAI, Perplexity, and Microsoft — indicated that once the policy takes effect on January 15, their chatbots would no longer be accessible via WhatsApp.
However, the restrictions do not apply to businesses creating their own chatbots — AI-powered or otherwise — for direct communication with customers on WhatsApp.
Global Regulatory Pressure Mounts
Brazil’s investigation follows similar actions in Europe. Both the European Union and Italy have launched antitrust probes into the same policy. If EU regulators conclude that Meta has violated competition rules, the company could face penalties of up to 10% of its global revenue.
In Italy, Meta has already signalled flexibility. According to a notice to developers reviewed by TechCrunch, the company has informed AI providers that they may continue offering chatbots to users in Italy even after the January 15 deadline. A comparable adjustment could be made in Brazil in response to CADE’s intervention.
Meta’s Position on API Usage
Meta did not immediately comment on the Brazilian order outside standard business hours. Historically, the company has argued that third-party AI chatbots place excessive strain on infrastructure originally designed for different business API use cases.
Meta has also stated that users who want to access alternative AI chatbots can do so outside of WhatsApp.
When announcing the policy change in October, a Meta spokesperson said:
“The purpose of the WhatsApp Business API is to help businesses provide customer support and send relevant updates. Our focus is on supporting the tens of thousands of businesses who are building these experiences on WhatsApp.”
What Comes Next
As regulators across multiple regions continue to assess the competitive impact of Meta’s WhatsApp AI strategy, the outcome of Brazil’s investigation could influence how the company enforces its policy globally. For AI providers and businesses relying on messaging platforms, the decision may set an important precedent for how access to dominant digital ecosystems is governed.
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