EU Probes WhatsApp AI Plan, Raising Risk of Temporary Ban on Meta

The European Union has launched an investigation into WhatsApp's AI features, potentially leading to a temporary ban on Meta's rollout of new policies. EU antitrust chief Teresa Ribera is considering interim measures to prevent the issue from escalating. The probe centers on allegations that WhatsApp's AI tools unfairly hinder rival providers from offering business services through the messaging platform. Under EU rules, regulators can order companies to halt suspect practices temporarily, with fines reaching up to 10% of global revenue for repeated offenses. Meta will now be required to submit solutions to address regulators' concerns. The EU has increased pressure on Silicon Valley firms in recent years, pushing for legislation to curb market abuses by major players. WhatsApp has dismissed the claims as 'baseless,' citing system strain and competitive alternatives. Analysts predict a quick settlement, with regulators prioritizing established competition law over the Digital Markets Act. The investigation comes amid a broader probe into Meta's use of AI tools in WhatsApp, with Italian regulators also looking into alleged market dominance. The EU's swift intervention is seen as crucial, with some companies already pushing for temporary curbs on Meta's plans. Meta has faced significant fines in the past, including a €200 million penalty for breaching the Digital Markets Act and €798 million for tying Facebook Marketplace to its social network.