WhatsApp Exempts Brazil, Italy from AI Chatbot Ban Amid Regulatory Pushback

WhatsApp’s Policy Shift: Brazil and Italy Exempted from AI Chatbot Ban

In a significant policy adjustment, WhatsApp has decided to exempt users in Brazil from its recent ban on third-party, general-purpose AI chatbots. This decision follows a directive from Brazil’s competition regulator, the Conselho Administrativo de Defesa Econômica (CADE), which ordered Meta, WhatsApp’s parent company, to suspend its new policy that restricted such chatbots on the platform.

Background on WhatsApp’s Policy Change

In October 2025, WhatsApp announced a revision to its Business API terms, aiming to prohibit AI providers from offering general-purpose chatbots through its platform. This policy, set to take effect on January 15, 2026, was intended to address concerns about system strain and to ensure that the platform’s resources were used as designed. The policy specifically targeted AI chatbots like ChatGPT and Grok, which provide a wide range of functionalities beyond customer service.

Brazil’s Regulatory Intervention

On January 13, 2026, CADE intervened by ordering Meta to halt the implementation of this policy in Brazil. The regulator expressed concerns that the policy could be anti-competitive, potentially favoring Meta’s own AI chatbot, Meta AI, over competitors. CADE announced an investigation to determine if Meta’s terms were exclusionary and if they unduly favored Meta’s offerings.

WhatsApp’s Response and Exemption for Brazil

In response to CADE’s directive, WhatsApp informed AI developers that the requirement to cease responding to user queries and to implement pre-approved auto-reply messages by January 15, 2026, would no longer apply when messaging users with Brazilian phone numbers (country code +55). This means that AI providers can continue offering their chatbots to Brazilian users without interruption.

Similar Exemption for Italy

This move mirrors a previous exemption granted to users in Italy. In December 2025, Italy’s competition authority, the Italian Competition Authority (AGCM), ordered Meta to suspend its policy banning rival AI chatbots from WhatsApp. The AGCM’s investigation suggested that Meta’s conduct could limit market access and technical development in the AI chatbot services market, potentially harming consumers. In response, Meta provided an exemption for Italian users, allowing third-party AI chatbots to continue operating on WhatsApp in Italy.

European Union’s Antitrust Investigation

Beyond individual country interventions, the European Union has also taken notice. In December 2025, the European Commission launched an antitrust investigation into Meta’s policy change, scrutinizing whether the ban on rival AI chatbots constituted anti-competitive behavior. The investigation aims to assess if Meta’s actions could limit innovation and consumer choice in the AI chatbot market.

Meta’s Justification and Industry Reactions

Meta has consistently argued that the proliferation of AI chatbots on its Business API has placed undue strain on systems not designed to support such functionalities. The company maintains that WhatsApp is not intended to serve as a platform for distributing general-purpose AI chatbots and suggests that AI companies should utilize app stores, websites, and industry partnerships for distribution.

However, this stance has faced criticism from various stakeholders. Competitors argue that the policy change could stifle innovation and limit consumer choice. For instance, Microsoft announced that its AI chatbot, Copilot, would no longer be available on WhatsApp after January 15, 2026, due to the policy change. Users were advised to switch to Microsoft’s own platforms to continue using Copilot.

Implications for AI Providers and Users

The exemptions granted to Brazil and Italy highlight the influence of regulatory bodies in shaping platform policies, especially when potential anti-competitive behavior is at stake. For AI providers, these exemptions mean continued access to significant markets, allowing them to offer their services without disruption. For users in these countries, it ensures that they can continue to interact with a variety of AI chatbots on WhatsApp, maintaining the diversity of services available to them.

Looking Ahead

As regulatory bodies in various regions continue to scrutinize Meta’s policies, it remains to be seen how the company will navigate these challenges. The balance between maintaining system integrity and fostering a competitive, innovative environment is delicate. Future developments will likely depend on the outcomes of ongoing investigations and the evolving landscape of AI integration within messaging platforms.