Meta Platforms, Inc. (NASDAQ:META) is temporarily granting competing AI chatbot developers free access to WhatsApp in Europe as it seeks to resolve escalating antitrust concerns from EU regulators and avoid potentially billions in penalties.
Meta Makes Temporary WhatsApp Concession Amid EU Pressure
The company said Tuesday that general-purpose AI chatbots operating in the European Economic Area will receive free access to WhatsApp's Business API for one month while discussions with the European Commission continue, Reuters reported.
Meta's move follows growing scrutiny over its Jan. 15 policy that initially restricted WhatsApp AI integration to Meta AI alone.
Although Meta later revised the policy in March to permit rival chatbots for a fee, EU regulators argued the changes may still hinder fair competition.
A Meta spokesperson told the publication that the move was part of efforts to reach a "quick and fair" resolution with regulators.
Meta did not immediately respond to Benzinga's request for comments.
European Commission Signals Cautious Approval
The European Commission called the latest concession a step in the right direction, suggesting the temporary arrangement may create conditions for more substantive commitments from Meta.
However, officials noted that negotiations remain time-sensitive and depend on Meta's "genuine intention" to fully address competition concerns.
Billions In Potential Fines At Stake
If Meta fails to satisfy EU regulators, it could face formal antitrust charges and fines of up to 10% of its annual global revenue.
The investigation was triggered by complaints from rival AI firms, including California-based The Interaction Company, developer of Poke.com and a Spanish competitor.
The EU is also reportedly weighing new rules that could restrict member states from relying on U.S.-based cloud providers to handle sensitive government data.
Price Action: Meta shares finished Tuesday's session at $603.00, gaining 0.69% and edged down 0.18% to $601.93 in after-hours trading, according to Benzinga Pro.
Benzinga Edge Rankings place Meta in the 89th percentile for growth, although the stock has faced a negative price trend across short, medium and long-term periods.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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