Meta face Italian regulator’s probe over AI service in WhatsApp

The Italian Competition Authority said it has launched an investigation into Meta Platforms (NASDAQ:META), alleging that the company abused its dominant position by installing its AI service on the messaging app WhatsApp.

“By combining Meta AI with WhatsApp, Meta appears capable of channelling its customer base into the emerging market, not through merit-based competition, but by “imposing” the availability of the two distinct services upon users, potentially harming competitors,” said the antitrust regulator known as AGCM.

Meta did not immediately respond to a request for comment from Seeking Alpha.

The watchdog noted that it is acting “in close cooperation with the relevant offices of the European Commission”.

The AGCM said Meta decided to pre-install its AI service named Meta AI by combining it with its WhatsApp service, without any prior request from users. In addition, Meta AI is placed in a prominent position on the screen and integrated into the search bar.

The regulator noted that there is a risk that users may become “locked in” or functionally dependent on Meta AI, not least because, by using the information provided over time, it appears that the responses generated by the service become increasingly useful and relevant.

“Offering free access to our AI features in WhatsApp gives millions of Italians the choice to use AI in a place they already know, trust and understand,” a Meta spokesperson said in a statement to Reuters.

In addition, the authority said that its officials, assisted by the Special Antitrust Unit of the Italian Financial Police, carried out an inspection at the premises of Meta’s Italian subsidiary Facebook Italy.