CADE opens investigation against Meta and applies preventive measure suspending WhatsApp’s new terms regarding AI

Brazil’s antitrust body – the Brazilian Administrative Council for Economic Defense (CADE) – has initiated an administrative inquiry into Meta, the parent company of WhatsApp, to investigate potential abuse of dominant market position. The focus is on the new “WhatsApp Business Solution Terms,” which allegedly impose restrictions on providers of AI tools, potentially excluding competitors and favoring Meta’s own AI services. As a precautionary measure, CADE has suspended the implementation of these new terms until a thorough evaluation of whether the proposed changes have the potential to close markets, exclude competitors, and unduly favour Meta AI, which could become the only option available to platform users. At the end of the procedure, CADE may decide to open an administrative process or to close the case.

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