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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.

Meta Exempts Italy From WhatsApp Ban on Rival AI Chatbots After Antitrust Order

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Meta Platforms will exclude Italy from its planned ban on rival artificial intelligence chatbots on WhatsApp, following an order from the country’s antitrust authority, according to a notice sent to AI providers and developers and seen by Reuters.

Italy’s competition watchdog, AGCM, last month instructed Meta to suspend the proposed ban while it investigates the company for a suspected abuse of market power, after complaints from rival AI providers. At the European level, the European Commission is also examining whether Meta violated competition rules by restricting access for third-party AI chatbots on WhatsApp, although it has not imposed interim measures.

Blocking rival AI providers from WhatsApp could significantly benefit Meta’s own chatbot and virtual assistant, Meta AI, which was integrated into the messaging platform last year. Critics argue that limiting competitors’ access would further strengthen Meta’s position in AI-powered consumer services.

In its notice to developers circulated earlier this month, Meta said that phone numbers with an Italian country code (+39) are currently exempt from WhatsApp’s updated terms of service, in order to comply with the Italian regulator’s order. The revised terms are scheduled to take effect on January 15 for users outside Italy.

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Meta declined to comment on the changes, referring instead to a previous statement that said the rapid emergence of AI chatbots has placed strain on WhatsApp’s systems, which were not originally designed to support such services. The Italian antitrust authority also declined to comment.

The Italian carve-out drew sharp criticism from rivals. The Interaction Company of California, which developed the AI assistant Poke.com and filed complaints with both Italian and EU regulators, said Meta’s response was insufficient.

“Meta’s move to keep enforcing its new WhatsApp API policy—shutting out AI rivals like Poke.com while only carving out +39 numbers—is deeply disappointing,” said Marvin von Hagen, the company’s co-founder and chief executive. He added that the Italian authority had already found Meta’s conduct to be, at first glance, anti-competitive under EU law, and urged the European Commission to adopt interim measures across the bloc.