Meta has been hit with an EU antitrust investigation over its use of artificial‑intelligence features in WhatsApp, as the European bloc continues to intensify scrutiny of U.S. technology giants.
The investigation will examine whether Meta’s recent policy allowing AI providers to access WhatsApp’s platform could breach EU competition rules, the European Commission said on Thursday.
“The claims are baseless,” a WhatsApp spokesperson told CNBC in a statement, adding that the app’s application programming interface (API) was not designed to support AI chatbots and “puts a strain on our systems.”
The spokesperson also noted that the AI market is highly competitive, with users able to choose services through app stores, search engines, email platforms, partnership integrations and operating systems.
Meta’s probe follows a wave of enforcement actions in Europe. Earlier this year, the European Commission fined Google €2.95 billion ($3.45 billion) for antitrust violations in online advertising. In April, Apple was penalized €500 million for breaching anti‑steering rules, and Meta itself was fined €200 million for restricting consumers’ choice of low‑data‑usage services.
Regulatory context and business implications
The EU’s aggressive stance reflects a broader strategy to rein in the market power of large digital platforms. By targeting the integration of AI services into widely used messaging apps, regulators aim to prevent “gatekeeping” that could lock users into a single provider’s ecosystem.
For Meta, the investigation raises several strategic questions:
- Platform openness versus control – Opening WhatsApp’s API to third‑party AI could unlock new revenue streams, but it also exposes the platform to heightened scrutiny over data handling and competitive fairness.
- Data privacy risks – AI models require large data inputs. Regulators may view the sharing of user messages with external AI providers as a potential violation of the GDPR’s strict data‑protection standards.
- Competitive pressure – Competitors such as Google’s Bard, OpenAI’s ChatGPT, and emerging European AI firms are rapidly expanding their presence in messaging. A restrictive regulatory outcome could limit Meta’s ability to keep pace.
- Financial impact – While the direct cost of a fine is uncertain, prolonged litigation can affect Meta’s valuation, with investors factoring in regulatory risk premiums.
Analysts expect Meta to adopt a more cautious rollout of AI features on WhatsApp, possibly limiting access to vetted partners or creating a sandbox environment that satisfies EU competition requirements. Such a strategy could preserve the company’s growth trajectory while mitigating legal exposure.
Overall, the EU investigation underscores the increasing intersection of AI innovation and antitrust law. Companies that navigate these regulatory waters effectively will be better positioned to capitalize on the booming AI market without incurring costly penalties.
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