WhatsApp's AI Policy Under EU Scrutiny: A Calculated Risk?
EU Investigation Launched
The European Commission has launched a formal antitrust investigation into Meta's WhatsApp, focusing on its policy restricting AI providers from using WhatsApp's business communication tools. Specifically, the investigation targets Meta’s October 2025 policy, which effectively bars AI providers from offering their services through WhatsApp Business Solution if AI is their primary offering. The core concern? This could stifle competition, preventing third-party AI services from reaching customers within the European Economic Area (EEA). WhatsApp faces European antitrust investigation over artificial intelligence
WhatsApp's Defense
WhatsApp, predictably, claims the allegations are "baseless." Their argument, as stated by a spokesperson, centers on the strain that AI chatbots are placing on their systems (systems, it should be noted, not initially designed for such heavy AI traffic). This raises an immediate question: If the infrastructure can't handle the load, why not invest in upgrades instead of simply blocking competitors?
Implications of the Policy
The implications here are significant. While businesses can still use AI for ancillary functions like customer support via WhatsApp, the Commission points out that Meta’s own AI service, "Meta AI," remains fully accessible. This creates a clear advantage for Meta, essentially allowing them to box out competitors while promoting their own AI solutions. For existing AI providers on WhatsApp, the policy took effect on January 15, 2026; for new entrants, it's been in place since October 15, 2025. It's a staggered rollout, but the end result is the same: a walled garden for Meta's AI.
The Italian Exception and Broader Implications
Fragmented Regulatory Landscape
Interestingly, Italy is excluded from this particular EU investigation, as their national competition authority already has ongoing proceedings concerning Meta’s conduct. This fragmented regulatory landscape adds another layer of complexity. Will other countries follow Italy's lead and launch their own investigations? Or will they rely on the EU-wide probe? The lack of a unified approach could create loopholes and inconsistencies in enforcement.
EU's Stance and Potential Remedies
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, stated that the EU must "prevent dominant digital incumbents from abusing their power to crowd out innovative competitors." A noble sentiment, but the devil is always in the details. How will the Commission define "abuse of power" in this context? And what remedies will they propose if they find Meta in violation of EU competition rules? Fines are a possibility, but more structural remedies, such as forcing Meta to open up its platform to third-party AI providers, could have a more lasting impact. The Commission has prioritized this investigation, but there’s no legal deadline for its completion. These probes often drag on for years, potentially blunting their effectiveness.
Defining the Relevant Market
I've looked at enough of these antitrust cases to know that the key lies in defining the relevant market. Is it simply "AI services," or is it more narrowly defined as "AI services offered through messaging platforms"? The narrower the definition, the easier it is to argue that Meta has a dominant position.
So, What's the Real Story?
Broader Trend of Tech Giant Dominance
This investigation isn't just about WhatsApp; it's about the broader trend of tech giants leveraging their existing platforms to dominate emerging markets like AI. Meta's strategy is clear: control the distribution channel (WhatsApp) to control access to the market (AI services). Whether that strategy will withstand regulatory scrutiny remains to be seen. But one thing is certain: the stakes are high, and the outcome of this investigation could reshape the competitive landscape for AI in Europe. I'm betting we'll see more regulatory challenges to Meta's AI plays in the coming years. This isn't a one-off; it's a sign of things to come.
