AI Chatbots and Competition Law: A Look into the Meta WhatsApp Antitrust Investigations
The rise of conversational AI agents—from simple chatbots to sophisticated assistants capable of autonomous commerce—is transforming how businesses and consumers interact with digital services. As this technology evolves, competition authorities globally are scrutinizing whether the largest tech platforms may exercise control over access to emerging AI markets.
The European Commission’s Antitrust Investigation
On December 4, 2025, the European Commission (EC) launched an investigation into Meta’s new WhatsApp policy, which restricts third-party AI chatbots. This investigation aims to determine if Meta’s actions constitute an abuse of its dominant market position, violating Article 102 of the TFEU. Key concerns include:
- Exclusion of Rival Services: The EC is worried that Meta could be using its market power to exclude competing AI services from WhatsApp, thereby reducing consumer choice and stifling innovation.
- Self-Preferencing and Ecosystem Leverage: The investigation questions whether Meta is favoring its own AI assistant, “Meta AI,” effectively making it the only generative AI chatbot available on WhatsApp.
- Impact on Innovation and Consumers: The EC is focused on the dynamic effects on innovation and consumer welfare, aiming to ensure that competition drives technical advancements in new AI use cases.
The EC is considering swift interim measures that could force Meta to alter its policy before a final infringement decision is reached, although such measures face substantial legal hurdles.
Italian Interim Injunction
On December 24, 2025, the Italian Competition Authority (ACGM) ordered Meta to halt its ban on rival AI chatbots pending the conclusion of their investigation. The ACGM highlighted that the sudden change in WhatsApp’s operating rules could irreparably harm competition and disrupt companies preparing to enter the market. Meta responded by allowing certain AI chatbots to operate in Italy while continuing to block them elsewhere.
Brazilian Preventative Measure
On January 12, 2026, Brazil’s competition authority, CADE, issued a temporary injunction against Meta’s new contractual terms, alleging potential abuse of dominant position. CADE emphasized the imminent risk of irreversible damage to the market and consumers. While Meta initially complied, a judicial decision on January 23, 2026, allowed Meta to suspend the injunction.
Global Regulatory Response
Further complaints have emerged in the Common Market for Eastern and Southern Africa (COMESA) regarding Meta’s updated WhatsApp Business Terms, emphasizing concerns about restricting competition in existing and emerging AI markets.
Meta’s Justifications
In defense of its WhatsApp policy, Meta has raised several points:
- Protecting WhatsApp’s Technical Integrity: Meta argues that third-party AI chatbots could strain WhatsApp’s systems, necessitating restrictions to maintain quality service.
- Ensuring Intended Use: The company claims that its platform was designed for direct business-to-customer communication, not for independent AI services.
- Minimal Impact on Competition: Meta asserts that the AI assistant market remains highly competitive, with many alternative channels available for AI providers.
- No Barrier to Innovation: Meta contends that its terms update will not harm overall innovation or consumer choice.
Future Implications
As Meta faces multiple investigations across jurisdictions, the resolution of these issues will likely depend on whether the company can justify its policy as necessary and beneficial to competition. Similar scrutiny may arise from the UK’s Competition and Markets Authority (CMA), which has yet to publicly address Meta’s WhatsApp policy but has identified analogous concerns in its reports on AI.
This situation highlights the growing intersection of AI technology and competition law, suggesting that regulators worldwide will continue to monitor and potentially challenge dominant positions in emerging AI markets.
