Brazil's competition authority has instructed WhatsApp to suspend its policy that prevents third-party AI firms from utilizing its business API to provide chatbot services within the app. The regulator has also initiated an investigation to assess whether this policy violates competition rules.

According to the Conselho Administrativo de Defesa Econômica (CADE), there are indications of potentially anti-competitive behavior stemming from the updated WhatsApp Business Solution Terms imposed by Meta. These terms govern how providers of artificial intelligence tools can access and offer their technologies to WhatsApp users. CADE will examine whether Meta's terms unfairly exclude competitors while giving preferential treatment to Meta AI, the company's own chatbot available on WhatsApp.

In October, Meta revised the terms of use for the WhatsApp Business API to prohibit third-party AI companies from offering their chatbots through the platform. Following this change, companies such as OpenAI, Perplexity, and Microsoft indicated that their chatbot services would no longer be accessible on WhatsApp once the policy took effect on January 15. It is important to note that Meta's policy does not restrict businesses from developing and offering their own chatbots—whether AI-powered or otherwise—to interact with customers on WhatsApp.

This investigation in Brazil follows similar antitrust probes launched by the European Union and Italy regarding the same policy. Should the EU determine that Meta has breached antitrust regulations, the company could face fines of up to 10% of its global revenue. A comparable outcome is possible in Brazil depending on the findings of CADE's inquiry.

Meta has not yet responded to requests for comment outside of standard business hours. The company has repeatedly stated that AI chatbots are placing excessive strain on systems originally designed for different uses of its business API. Meta has also suggested that users interested in alternative chatbots can access them outside of WhatsApp.

When the terms were updated in October, a Meta spokesperson emphasized that the WhatsApp Business API is intended to help businesses deliver customer support and relevant updates. The spokesperson noted, "Our focus is on supporting the tens of thousands of businesses who are building these experiences on WhatsApp."