By Brazil Stock Guide – Brazil’s antitrust authority has opened an administrative inquiry into Meta Platforms Inc. (META) and ordered the suspension of new WhatsApp terms governing the use of artificial intelligence tools, citing potential risks to competition in digital markets.
The investigation was launched on Monday (12) by the Superintendence-General of the Administrative Council for Economic Defense, known as Cade. The agency said there are indications that the new WhatsApp Business Solution Terms could constitute an abuse of dominant position by imposing restrictive conditions on providers of artificial intelligence technologies seeking access to WhatsApp users.
According to Cade, the revised terms regulate how third-party AI tool developers can offer their technologies within WhatsApp and may have exclusionary effects. The authority is examining whether the changes could lead to market foreclosure, eliminate competing services and unduly favor Meta’s own artificial intelligence product, Meta AI.
As a precautionary measure, Cade suspended the application of the new terms until the authority completes its assessment of the potential violations of Brazil’s competition law. The move is intended to preserve existing market conditions and ensure the effectiveness of the ongoing investigation.
With the opening of the inquiry, the companies under investigation will be formally notified and invited to submit their responses. Cade also plans to gather information from market participants to further evaluate the competitive impact of the proposed contractual changes.
At the conclusion of the inquiry, the authority may decide to open a formal administrative proceeding or close the case if it finds insufficient evidence of wrongdoing. Cade noted that alleged abuses of dominant position in digital markets, particularly those involving artificial intelligence tools, are under scrutiny by competition authorities in multiple jurisdictions.