Meta Platforms saw its stock rise 0.6% to $665.16 in Monday trading, even as European Union regulators escalated an antitrust probe concerning the company's restrictions on competing artificial intelligence services within its WhatsApp messaging platform.
The European Commission issued a formal statement of objections and indicated it could deploy interim measures—an unusual step—to prevent what it called "serious and irreparable" harm to competition while its investigation continues. Regulators are focused on Meta's decision to limit rival AI assistants from using WhatsApp's Business API, a tool that enables businesses to integrate services with the platform.
EU antitrust chief Teresa Ribera emphasized the need to safeguard competition in the rapidly growing AI field, warning against dominant players using their platform power to distort the market. The Commission stated it is considering swift action to ensure competitors maintain access to WhatsApp's user base in Europe.
Meta pushed back against the allegations, stating regulators had "no reason" to intervene. A company spokesperson argued that users already access AI tools through various channels and contested the characterization of WhatsApp's Business API as a critical distribution route for chatbots.
The broader market opened lower, with the Dow Jones Industrial Average down 0.14%, the S&P 500 falling 0.22%, and the Nasdaq Composite declining 0.34%. Investors remain cautious ahead of key U.S. economic data, including the delayed January jobs report on Wednesday and the consumer price index on Friday, which could influence interest rate expectations.
For Meta, the EU proceedings represent a tangible regulatory risk. If interim measures are imposed, the company might need to adjust its strategy around bundling and promoting its own AI features within WhatsApp, potentially opening the door for competitors to gain easier access to the platform's users.
