Brazil’s competition watchdog, the Conselho Administrativo de Defesa Econômica (CADE), has ordered Meta to temporarily suspend its policy banning third-party AI chatbots from operating on WhatsApp via the WhatsApp Business API. The move follows concerns that the policy may constitute anti-competitive behavior by favoring Meta’s own AI offerings over those of rivals. CADE stated that its preliminary investigation suggests the new WhatsApp Business Solution Terms, introduced by Meta in October, could be exclusionary in nature. The terms restrict third-party artificial intelligence providers from using the API to offer chatbot services on WhatsApp, raising concerns that the policy unfairly limits competition and may unduly benefit Meta AI, the company’s in-house chatbot. The investigation will assess whether the policy creates an unfair advantage for Meta’s own AI services while blocking other developers, including major players like OpenAI, Perplexity, and Microsoft, from providing their chatbots to WhatsApp users. Notably, the policy does not prevent businesses from deploying their own AI-powered chatbots for customer service, which has led to criticism that the rule targets external AI providers while allowing Meta to maintain control over the platform. The EU has also launched a separate antitrust probe into the policy, with the potential for fines of up to 10% of Meta’s global revenue if violations are found. Italy has similarly taken action, with Meta agreeing to allow third-party AI chatbots to continue operating on WhatsApp in that country despite the new terms. Meta has defended the policy, arguing that AI chatbots are placing increased strain on its systems, which were originally designed for business messaging and customer support. The company maintains that its primary goal is to support businesses using WhatsApp for legitimate communication purposes. “In the past, we’ve said people who want to use different chatbots can do so outside WhatsApp,” a Meta spokesperson said in October. “The purpose of the WhatsApp Business API is to help businesses provide customer support and send relevant updates. Our focus is on supporting the tens of thousands of businesses who are building these experiences on WhatsApp.” With CADE’s order in place, Meta may be required to allow third-party AI providers to continue offering their services on WhatsApp in Brazil while the investigation proceeds. The company has not yet responded to requests for comment outside regular business hours.