EU Commission launches antitrust investigation against Meta despite pressure from the US

The European Commission has initiated an antitrust investigation into Meta, focusing on its AI practices within WhatsApp. This move follows closely on the heels of a recent visit by U.S. trade officials to Brussels, who cautioned that steep tariffs on EU steel and aluminium could persist if EU regulations targeting major tech companies were diluted.

AI is rapidly expanding across Europe and worldwide, stated EU Competition Commissioner Teresa Ribera, defending the action. It is vital that European citizens and businesses fully benefit from this technological advancement while preventing dominant digital players from stifling competition.

Market Dominance Concerns

The inquiry examines a new Meta policy that may restrict AI providers from interacting with WhatsApp users, potentially giving Metas own AI a competitive advantage. Earlier this year, Meta incorporated its AI system into WhatsApp, including chat groups managed by businesses. Until October, businesses could use AI bots in these groups to assist customers, but the updated rules may limit such applications, sparking fears of anti-competitive behavior.

The investigation is not based on the EUs Digital Markets Act, which has faced criticism from the U.S., but it could still affect EU-U.S. discussions regarding tariffs of up to 50%.

Meta Responds

A WhatsApp spokesperson rejected the EUs allegations, calling them baseless. They explained, The introduction of AI chatbots on our Business API creates strain on our systems that were not designed to handle it. Nonetheless, the AI market remains highly competitive, and users have access to a variety of services through app stores, search engines, email platforms, partnerships, and operating systems.

Author: Harper Simmons