WhatsApp opens platform to rival AI chatbots in Brazil
What's the story
Meta is now allowing rival artificial intelligence (AI) companies to offer their chatbots on WhatsApp to Brazilian users for a fee. The decision comes after Brazil's antitrust regulator CADE ruled against Meta and rejected its appeal against an order to suspend its policy change barring third-party AI chatbots on WhatsApp. This also comes just a day after the company announced a similar move for European users.
Regulatory stance
CADE found legal grounds for maintaining the preventive measure
The CADE Tribunal found sufficient grounds for maintaining the preventive measure, citing legal plausibility due to WhatsApp's importance in Brazil's instant messaging services market. The regulator also noted that banning third-party AI chatbots on WhatsApp "would not be proportionate" and could cause competitive harm. In response, Meta announced it would let third-party AI chatbot providers use its WhatsApp Business API to offer their services on the app for a fee.
Cost implications
Meta's pricing policy could lead to increased costs
Meta will charge $0.0625 per "non-template message" in Brazil from March 11. The company said, "Where we are legally required to provide AI chatbots through the WhatsApp business API, we are introducing pricing for the companies that choose to use our platform to provide those services." However, developers have expressed reluctance to resume services due to Meta's high pricing policy which could lead to increased costs.
Positive reception
Zapia welcomed CADE's decision
Zapia, one of the companies that complained to CADE in Brazil, welcomed the regulator's decision. It said, "Competition and preventing powerful companies from limiting how innovation reaches users. At Zapia, we believe people should be free to choose the AI tools they use, and innovation only thrives when the platforms people rely on every day remain open." The company plans to continue challenging these restrictions across Latin America.