Brazilian Court Pauses Antitrust Measure Targeting Meta

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A Brazilian court has temporarily suspended a preventive measure imposed by the country’s competition authority, CADE, that restricted Meta Platforms Inc. from enforcing limitations on third-party artificial intelligence tools within WhatsApp Business.(Reuters)

The ruling comes amid an ongoing investigation by CADE into whether recent changes to WhatsApp Business terms amount to anticompetitive conduct. The inquiry was launched following complaints from AI chatbot providers, who argue that the new rules unfairly prevent them from accessing or operating on the platform.

WhatsApp Business, the commercial version of the messaging service, announced updated user terms last year that prohibit AI developers and service providers from accessing or using the application. CADE responded by adopting a preventive measure aimed at preserving competitive conditions while the investigation was ongoing.

The court’s decision suspends that measure, effectively allowing Meta to proceed without the restrictions imposed by the competition authority for the time being. In a statement following the ruling, Meta welcomed the decision, asserting that regulatory intervention was unwarranted. A company spokesperson stated that the facts of the case did not support intervention in Brazil or other jurisdictions.

The regulatory dispute has also involved changes to the geographic scope of the restrictions. Brazilian phone numbers were initially excluded from the AI-related limitations last week, although that exemption no longer appeared in WhatsApp Business terms as of Friday.

CADE has indicated that it will provide further comment after reviewing the full text of the court’s ruling. The investigation into Meta’s conduct remains ongoing, and the authority retains the power to take further action depending on its final assessment of the case.