ROME: Italy’s competition watchdog has escalated its probe into Meta Platforms Inc. (META.O), accusing the tech giant of leveraging its market dominance to stifle rivals via AI enhancements in WhatsApp.
The Italian Antitrust Authority (AGCM) announced Tuesday that it is expanding a July-launched inquiry, now targeting the September 2024 rollout of updated WhatsApp Business Service terms and the seamless embedding of Meta AI functionalities within the app. Regulators allege these moves could hinder innovation, limit market entry for competing AI chatbots, and curb overall output in the burgeoning sector.
“By mandating AI integrations without opt-out options, Meta risks entrenching its control, sidelining developers and users seeking alternatives,” the AGCM stated in a release. The probe examines potential breaches of EU antitrust laws, focusing on non-consensual data usage for AI training and the bundling of services that disadvantages third-party providers.
Authorities are mulling provisional remedies, such as temporary suspensions of the new terms or AI features, to prevent irreparable harm during the investigation.
This marks the latest EU scrutiny on Big Tech’s AI ambitions, following similar cases against Google and Apple. Meta, which counts over 2 billion WhatsApp users globally, has yet to comment. The case could set precedents for cross-border digital enforcement.