WhatsApp AI Policy Faces Scrutiny

What happened

Italy's competition authority, AGCM, broadened its investigation into WhatsApp's AI integration and new policies, including the WhatsApp Business Solution Terms effective October and Meta's AI features. This action scrutinises Meta's potential abuse of market dominance, specifically concerning the hindering of rival AI chatbot services, restriction of market access, and limitation of technical development. The probe, initiated in July over concerns of AI embedding without user consent, now includes the power to impose interim measures.

Why it matters

The broadened investigation introduces a new operational constraint for platform operators and procurement teams, increasing exposure to regulatory scrutiny regarding AI chatbot integration and third-party service compatibility. The AGCM's power to impose interim measures creates a dependency on regulatory outcomes, potentially limiting the flexibility of AI service deployment. This raises due diligence requirements for compliance teams to ensure adherence to evolving competition rules and user consent requirements, particularly concerning market access for rival services and the potential for an oversight burden on AI feature deployment.