Meta Launches AI Chatbot in WhatsApp: Violates EU Competition Rules

Meta Allegedly Abused Its Market Dominance to Distort Competition in Italy
Meta Launches AI Chatbot in WhatsApp: Violates EU Competition Rules
Written By:
Saiprasad
Reviewed By:
Manisha Sharma
Published on

Meta is under scrutiny for integrating an AI chatbot in WhatsApp. The Italian Competition Authority launches an investigation into the tech giant for this move. It says Meta violated EU rules by distorting fair market competition and further accused Meta of misusing its established dominance to unfairly make users rely on its services.

This ongoing probe is about user independence, equitable market entry to all competitors, and ensuring privacy. Given WhatsApp’s large user base in Italy, the authority views the use of this extensive reach as a means to launch a new product or service as inherently unfair. This side-steps merit-based competition and significantly affects its rivals.

Will AI Chatbots Benefit Italians?

A Meta spokesperson, as reported by London’s international news agency Reuters, said the integration of WhatsApp’s AI chatbot feature will help millions of Italians. They can benefit from both the AI tool and traditional WhatsApp features within a single, convenient platform. 

While it is true that the Meta AI Chatbot can offer multilingual support, personalize interactions, make customer support more efficient, and automate workflows, the Italian Watchdog emphasizes that getting users’ explicit consent before launching the feature is necessary. The investigations are taking place precisely to determine whether the consents have been or will be obtained. 

Also Read: Proton Unveils Lumo: An AI Chatbot That Doesn’t Spy on You

Watchdog Expresses Concern Over Competition Distortion

WhatsApp is one of the most popular messaging apps in Italy, and therefore, a very large part of its population uses it. With such a level of dominance, WhatsApp's decision to introduce Meta AI chatbot in an important position, such as the search bar, puts itself at an unfair advantage over its competitors.

If established companies like WhatsApp promote their own Artificial Intelligence products and services, the new businesses in the market will struggle to reach their target audience and will eventually hinder development in the field. Moreover, this move is also perceived as an imposition of a service on users without their consent.

Also Read: Google and Meta Go Separate Ways on EU AI Act: What's at Stake?

In short, the Meta investigation claims the tech giant is accused of abusing its market dominance to launch the chatbot in WhatsApp. The Italian Competition Authority is concerned about other tech players. Meta has violated EU competition guidelines by severely affecting the rivals' positioning in the market. The company’s spokesperson tries to save the situation by saying the integration of an AI chatbot in WhatsApp will help Italians. The investigation is still ongoing; if the allegations are true, Meta may have to bear great losses.

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