Brazil Antitrust Authority Opens Probe Into WhatsApp Business AI Restrictions

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CADE, Brazil’s antitrust regulator, said on Monday it has opened an investigation into the updated terms of Meta Platforms’ WhatsApp Business tool, citing concerns over potential anti-competitive practices. As part of the probe, CADE has ordered the suspension of the new terms in Brazil while the case is under review.

According to the regulator, the investigation focuses on whether the revised terms restrict access by artificial intelligence tool providers to WhatsApp users in a way that harms competition. CADE said such limitations could affect how AI chatbot providers offer services through the messaging platform.

The probe follows complaints filed by AI chatbot companies after Meta introduced new terms in October that banned them from using the WhatsApp Business Solution. Regulatory documents indicate that rivals argue the policy effectively blocks third-party AI services, potentially favoring Meta’s own AI offerings within the WhatsApp ecosystem.

A WhatsApp spokesperson rejected the accusations, saying the claims are “fundamentally wrong.” The company said the rapid growth of AI chatbots on the WhatsApp Business Platform has strained its infrastructure, which was not originally designed to support such services.

Brazil’s move adds to mounting regulatory scrutiny of Meta’s AI and messaging practices worldwide, as competition authorities increasingly examine how large platforms manage access to their ecosystems amid the rise of generative AI tools.

Meta to Cut About 10% of Reality Labs Workforce as Metaverse Push Scales Back

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Meta Platforms plans to cut around 10% of employees in its Reality Labs division, according to a report by the New York Times citing three people familiar with the discussions. The layoffs, which could be announced as soon as Tuesday, are expected to fall disproportionately on teams working on metaverse-related products, including virtual reality headsets and virtual social platforms.

Reality Labs employs roughly 15,000 people and has been at the center of Meta’s long-running bet on the metaverse, an immersive digital universe championed by Chief Executive Mark Zuckerberg. Since 2020, the division has burned more than $60 billion, as heavy investment failed to translate into mass adoption or meaningful revenue.

Beyond the metaverse, Reality Labs is responsible for several of Meta’s hardware initiatives, including Quest mixed-reality headsets, smart glasses developed in partnership with EssilorLuxottica under the Ray-Ban brand, and longer-term augmented reality glasses. While Meta has struggled to sell its broader vision of interconnected virtual worlds, its smart glasses have shown early traction—an area where rivals such as Google and Apple have so far failed to gain momentum with initial products.

According to the report, Meta Chief Technology Officer Andrew Bosworth, who oversees Reality Labs, has scheduled an in-person staff meeting for Wednesday and urged employees to attend, citing an internal memo.

Meta declined to immediately comment on the report. The planned cuts come as the Facebook parent faces growing pressure to refocus resources while trying to regain ground in Silicon Valley’s artificial intelligence race. Meta has recently struggled to generate enthusiasm around its latest AI efforts, including the Llama 4 model, adding to investor scrutiny over spending priorities.

Crypto Custody Firm BitGo Targets Up to $1.96 Billion Valuation in U.S. IPO

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BitGo said on Monday it is seeking a valuation of up to $1.96 billion in its planned U.S. initial public offering, aiming to capitalize on renewed investor appetite for cryptocurrency-related companies. The Palo Alto, California-based firm and some existing shareholders plan to raise as much as $201 million by offering 11.8 million shares priced between $15 and $17 each.

The IPO market is expected to continue its gradual recovery in 2026, extending momentum that began in 2025, despite headwinds such as tariff-related volatility, a prolonged U.S. government shutdown, and a late-year selloff in AI stocks. Within this environment, crypto firms are cautiously returning to public markets after a turbulent period marked by sharp price swings across digital assets.

Several crypto companies are preparing for listings, including exchange Kraken, following high-profile market debuts last year by stablecoin issuer Circle and crypto exchange Bullish. However, the sector faced renewed pressure after a sharp crypto selloff in October, raising the bar for companies seeking strong investor backing.

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Analysts say recent pressure on AI and broader tech valuations has intensified scrutiny of risk assets, prompting investors to favor more regulated and infrastructure-focused firms. Lukas Muehlbauer, an IPO research analyst at IPOX, said this “flight to quality” positions BitGo as a more defensive play within the crypto sector compared with more speculative ventures. He added that the company is looking to take advantage of early 2026 market momentum, when small- and mid-cap index outperformance has created a favorable window for mid-sized offerings.

Founded in 2013, BitGo has grown into one of the largest crypto custody providers in the United States, storing and safeguarding digital assets for institutional and corporate clients. Its role has become increasingly critical as institutional participation in cryptocurrency markets expands.

The IPO is being underwritten by Goldman Sachs and Citigroup. BitGo plans to list its shares on the New York Stock Exchange under the ticker symbol “BTGO.”