WhatsApp to Charge Fees for AI Chatbots in Italy

WhatsApp will start charging developers for each message their AI chatbots send in Italy. The move follows a decision by Italy's competition authority to block Meta's plan to shut out rival AI bots from the app. Fees will begin on February 16 and apply only where regulators force WhatsApp to allow these chatbots.

Background

WhatsApp, owned by Meta, rolled out new rules in October last year to stop third-party AI chatbots from using its Business API. The company said its systems could not handle the extra load from these bots, which answer general questions from users. The policy took effect on January 15 this year, forcing developers to redirect users to websites or apps instead.

Developers like those behind ChatGPT, Perplexity, and others warned users their bots would no longer work on WhatsApp. Businesses using bots for customer service, like sending shipping updates or payment reminders, faced no changes. Those uses already come with fees for template messages.

Italy's competition watchdog, known as AGCM, stepped in last December. It ordered Meta to pause the ban for Italian phone numbers during an ongoing probe. The authority started looking into Meta's AI features on WhatsApp back in July. By November, it expanded the review to cover the new terms that exclude rival chatbots.

The AGCM found early signs that Meta's rules might limit competition in AI chatbots. It worried the policy could block market access and harm technical progress, hurting consumers in the end. The regulator is working with EU antitrust officials on the case.

Other countries took notice too. Brazil's watchdog first asked Meta to hold off, but a court there overturned that order last week. Now Meta tells developers not to serve Brazilian users with AI chatbots. In the EU, probes continue into whether Meta favors its own AI over rivals.

"Where we are legally required to provide AI chatbots through the WhatsApp Business API, we are introducing pricing for the companies that choose to use our platform to provide those services." – Meta spokesperson

Meta had set up an exemption for Italy earlier this month. It let developers keep serving Italian users without mentioning fees at first.

Key Details

The charges target non-template responses, meaning open-ended replies from AI bots. Meta sets the rate at $0.0691 per message in dollars, €0.0572 in euros, or £0.0498 in pounds. Developers pay only for messages sent through WhatsApp in Italy right now.

These fees could add up fast. A bot handling thousands of messages a day might face high bills. WhatsApp already bills businesses for certain automated messages, like marketing alerts or login codes. This new fee fits into that system but covers AI replies.

Rollout Timeline

The ban started January 15, but Italy got a pass. Notices went to developers then, allowing Italian numbers. Fees kick in February 16. Meta says this covers regions where laws demand access to third-party bots.

Developers must now think about costs. Some might pull back if expenses rise too much. Others could pass fees to users or cut features.

Meta's own AI chatbot stays free for users on WhatsApp. The company built it into the app without the same limits.

What This Means

This sets a model for other places. If regulators elsewhere force Meta to open WhatsApp to rival bots, fees could follow. It gives Meta a way to manage costs while meeting legal demands.

For developers, Italy offers a test ground. Success there might encourage expansion. Failure due to costs could push them to other platforms.

Users in Italy keep access to more AI options for now. They can chat with various bots without switching apps. But high fees might mean fewer bots over time.

Competition watches closely. Regulators aim to stop big tech from locking out smaller players. Meta's move balances that with its infrastructure needs.

Businesses relying on WhatsApp for customer talks see little change. Their bots for updates and support keep running as before.

The fees highlight growing tensions over AI on big platforms. Messaging apps like WhatsApp reach billions. Control over bots means control over conversations and data.

Meta argues its setup never planned for heavy AI use. Early blocks aimed to protect service quality. Regulators see it as a barrier to choice.

Developers adapt quickly. Some already shift users to web versions. Others explore partnerships outside WhatsApp.

Italy's case could shape rules across Europe. EU probes might lead to wider orders. Meta prepares for more such fights.

Small AI firms gain a foothold but at a price. Larger ones with deeper pockets might dominate. This could slow innovation from startups.

WhatsApp users worldwide number over two billion. Even small policy shifts ripple far. Fees in one country test the waters for global changes.

Meta keeps its core business steady. Ad revenue stays key, but AI integrations grow. Chatbots feed data that sharpens targeting.

Regulators push for open access. They want users to pick bots freely. Meta responds with costs to deter overload.

The story unfolds as probes continue. February 16 marks the first fee collections. Developers watch bills closely then.