Brazil’s antitrust authority CADE has opened an investigation into new terms for Meta’s WhatsApp Business tool and ordered the terms suspended in Brazil while the case is reviewed. CADE said it sees potential anti-competitive issues tied to how artificial intelligence tool providers may access WhatsApp users and offer their technologies through the platform.
CADE said the suspension is a preventive step meant to keep current market conditions in place as it evaluates the matter. The regulator said the paused terms were set to take effect on January 15.
New WhatsApp Business terms paused
CADE said on Monday it launched the probe into WhatsApp Business’s updated terms and will keep those new terms from applying in Brazil for now. CADE described the move as an immediate suspension while it evaluates the case.
In its public explanation, CADE said the concern centers on “potential anti-competitive practices” connected to access and offering by AI tool providers to WhatsApp users. CADE framed the issue around how third-party AI providers would be able to reach users through WhatsApp under the new rules.
Concerns over AI chatbot access
CADE said it is examining whether the new terms could affect how AI tool providers offer chatbot technologies to people using WhatsApp. In a statement describing its review, CADE said it is looking at possible conduct that could restrict access related to AI providers on the platform.
CADE also pointed to the risk that the changes could lead to “market closures, exclusion of competitors, and undue favoritism towards the company’s product.” CADE said the combination of a complete ban on third parties while keeping Meta’s own service available appeared disproportionate and could potentially breach principles of free economic competition.
Contract changes under review
CADE said the investigation is focused on contractual changes that Meta made in October, which CADE said reportedly restricted access to WhatsApp for other AI tool providers. CADE also said the changes reportedly still allowed the operation of Meta’s own platform, Meta AI.
As described by CADE, the preventive measure is intended to preserve competitive conditions while all indications of wrongdoing are evaluated. CADE said the suspension is meant to ensure the investigation remains effective.
Complaints that triggered the case
CADE said the investigation began after complaints from Spanish company Factoría Elcano and U.S. firm Brainlogic AI. CADE said it will evaluate whether the modifications could harm competition in ways such as excluding rivals or favoring Meta’s own product.
Meta’s response
Meta said the WhatsApp Business terms changes would not cause significant or irreparable harm to competition in the chatbot market. Meta also said chatbot services would “continue to compete vigorously, leveraging the numerous alternatives available to reach users.”
Meta did not immediately respond to a Reuters request for comment, according to a Reuters report carried by another outlet. CADE’s published statements, meanwhile, emphasize that the terms are suspended while the regulator evaluates the case.
Separate report on Reality Labs cuts
In a separate development mentioned in the same Reuters report, The New York Times reported that Meta plans to cut around 10% of employees in its Reality Labs division. The report said Reality Labs has roughly 15,000 employees and that cuts could be announced as soon as Tuesday, with an outsized impact on the metaverse unit.
The Reuters report also said Reality Labs produces products including Quest mixed-reality headsets, smart glasses made with EssilorLuxottica’s Ray-Ban brand, and augmented-reality glasses. The same report said Meta has struggled to sell its vision of an “immersive digital universe,” while seeing early success with smart glasses, and noted the company is also trying to stay relevant in the AI race after a poor reception for its Llama 4 model.
