Brazil CADE Orders Meta to Halt WhatsApp Third-Party AI Chatbot Ban
Brazil's CADE has ordered Meta to halt its ban on third-party AI chatbots on WhatsApp. The move follows similar antitrust probes in the EU and Italy, targeting Meta's potential market dominance.
The wall around Meta's AI ecosystem just hit a major roadblock in South America. Brazil's competition watchdog has ordered WhatsApp to suspend its new policy that bars third-party AI companies from using its business API. According to TechCrunch, the Conselho Administrativo de Defesa Econômica (CADE) is investigating whether this move is a play to stifle competition and unfairly favor 'Meta AI'.
Antitrust Scrutiny Over WhatsApp Third-Party AI Chatbot Ban
The controversy centers on a change Meta made to its terms of use in October 2025. The update prohibited third-party AI developers from offering chatbots through the WhatsApp Business API. Tech giants like OpenAI, Perplexity, and Microsoft were set to see their services vanish from the platform by January 15, 2026.
CADE stated that the policy could represent "anti-competitive conduct of an exclusive nature." They're digging into whether Meta is intentionally locking out rivals to ensure its own chatbot remains the dominant AI presence for WhatsApp's massive user base. While Meta doesn't stop businesses from building their own in-house AI bots, the ban on third-party providers severely limits the options available to smaller firms.
Meta's Defense and Global Backlash
Meta hasn't stayed silent. The company argues that AI chatbots place an unintended strain on a system designed for basic customer support. A Meta spokesperson previously noted that the API's focus is on supporting tens of thousands of businesses, not hosting general-purpose AI agents. "People who want to use different chatbots can do so outside WhatsApp," the company maintained.
Brazil's move mirrors actions in the European Union and Italy, signaling a coordinated global effort to prevent Big Tech from leveraging platform dominance into the AI sector. For now, Meta has indicated it might allow third-party bots to stay active in certain jurisdictions while legal battles continue.
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