Meta

EU orders Meta to restore access for AI assistants

The European Commission has imposed interim measures requiring Meta to restore access to WhatsApp for rival general-purpose AI assistants while an EU antitrust investigation continues.

The measures require Meta to reinstate access to the WhatsApp Business Solution for third-party AI assistant providers under the same terms that applied before 15 October 2025. Meta must comply within five working days and maintain access until the Commission adopts a final decision.

The Commission opened the investigation in December 2025 after Meta changed the terms of its WhatsApp Business Solution to restrict AI providers from using the service when AI was the primary service offered. In February 2026, the Commission sent Meta a Statement of Objections setting out its preliminary view that the conduct could breach the EU antitrust rules.

According to the Commission, Meta appears at first sight to hold a dominant position in the EEA-wide market for consumer communication applications through WhatsApp. It also said Meta may have abused that position by preventing competing general-purpose AI assistants from accessing and interacting with users on WhatsApp.

Meta revised its policy in March 2026 to allow third-party AI assistants back onto WhatsApp, but introduced a fee that the Commission said was, at first sight, equivalent in practice to the previous ban. The Commission warned that the conduct could harm competition at a critical stage in the development of the market for general-purpose AI assistants.

The substantive investigation remains ongoing, and the interim measures do not prejudge the Commission’s final decision. The Commission said it may impose fines or daily penalty payments if Meta fails to comply.

Why does it matter?

The case shows how the EU competition enforcement is moving into the emerging market for general-purpose AI assistants. WhatsApp is not only a messaging service, but also a major access point for businesses and users. If dominant platforms can limit rival AI assistants’ access to such channels, competition in AI services could be shaped before the market fully matures. The interim measures also signal that the Commission is willing to act quickly where it believes platform conduct may create serious and irreparable harm to competition.

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EU court annuls Meta Marketplace designation

The General Court of the European Union has annulled the European Commission’s decision designating Meta as a gatekeeper for Marketplace under the Digital Markets Act, while upholding the company’s designation for Messenger.

The case concerned the Commission’s 5 September 2023 decision designating Meta as a gatekeeper for several core platform services, including Facebook, Messenger, and Marketplace. Meta challenged the decision in part, contesting the classification of Messenger and Marketplace as important gateways under the DMA.

The General Court upheld the Commission’s assessment of Messenger, finding that the service is a number-independent interpersonal communications service distinct from Facebook. The court said Messenger is available through standalone applications, can be used independently of Facebook, and includes tools that allow businesses to engage with users.

The court also found that the Commission did not have to count only Messenger users who were not also Facebook users when assessing whether the quantitative threshold under the DMA was met. It also said the Commission was not required to open a market investigation in the absence of sufficiently substantiated arguments from Meta calling the DMA presumptions into question.

For Marketplace, the court found that the Commission erred in law by relying only on data from the three years preceding designation without taking account of changes made at the end of July 2023. Those changes limited the number of listings that could be published per user and led to the disappearance of the criterion used by the Commission to identify business users.

The court also found that the Commission had not provided sufficient reasoning for classifying Marketplace as an online intermediation service. It said the Commission failed to provide a concrete analysis of the July 2023 changes or to explain their effect on whether Marketplace-enabled business users could offer goods and services to consumers.

As a result, the decision was annulled only to the extent that it designated Meta as a gatekeeper for Marketplace. Meta’s Messenger designation remains in place.

Why does it matter?

The judgement is an important test of how the EU courts will review Digital Markets Act gatekeeper designations. It confirms that the Commission can rely on DMA presumptions where companies do not provide sufficiently substantiated counterarguments, as seen with Messenger. But it also shows that the Commission must properly assess relevant changes and provide sufficient reasoning when classifying a service as a core platform service, as the Marketplace annulment demonstrates.

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Meta turns to subscriptions amid growing AI infrastructure costs

Meta has launched paid subscription plans for Facebook, Instagram and WhatsApp as part of a broader effort to diversify revenue beyond advertising. The new offerings form part of a subscription strategy called ‘Meta One‘.

Meta said the subscriptions include additional features for users, while separate premium offerings for creators, businesses and Meta AI users are currently being tested. The company indicated that these future services will also sit under the Meta One umbrella.

The announcement comes as Meta continues to increase spending on AI infrastructure. The company has projected capital expenditure of between USD 125 billion and USD 145 billion in 2026, much of it linked to AI data centres, increasing investor attention on how those investments will generate returns.

According to Euronews, Meta shares rose following the announcement. The company said subscription products will roll out globally, while some future Meta One offerings are expected to begin testing in selected markets outside the EU.

Why does it matter?

The launch of Meta One marks a further shift in Meta’s business strategy as the company looks to diversify revenue beyond digital advertising. Subscription services could provide new income streams while supporting investments in AI infrastructure and premium digital products.

The move also reflects a broader trend among technology companies seeking alternative business models as competition intensifies and AI development costs continue to rise.

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WhatsApp introduces private AI chat mode for Meta AI conversations

WhatsApp has introduced a new private mode for conversations with Meta AI that limits storage and retention of chat data. According to Meta, conversations are designed to disappear after chats end and are not stored on company servers.

WhatsApp head Will Cathcart said the feature responds to user demand for more private AI interactions involving sensitive topics. Meta CEO Mark Zuckerberg described the feature as an AI product designed without persistent server-side conversation logs.

Professor Alan Woodward of the University of Surrey reportedly raised concerns about how disappearing conversations could affect accountability and investigations into harmful AI interactions. According to reports, critics argued that limited data retention could complicate review processes in cases involving harm or misuse.

Meta stated that the feature will initially support text-based interactions and include safeguards intended to block harmful or illegal requests. The announcement comes amid Meta’s broader expansion of AI-related products and infrastructure investments.

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Snap, YouTube, TikTok and Meta settle Kentucky school district lawsuit

At mid-May, Snap, YouTube and TikTok have reached a settlement in a lawsuit brought by the Breathitt County School District in Kentucky. The school district alleged that social media platforms contributed to learning disruption, mental health concerns, and additional financial pressures on schools.

Terms of the settlement have not been disclosed. Meta remained a defendant in the same litigation and was scheduled to proceed to trial on June 15th. However, on May 21st, the company also reached a settlement. The case is one of a broader series of lawsuits involving social media platforms and alleged harms affecting minors and schools.

This follows earlier related cases settled by Snap and TikTok. The companies have faced multiple lawsuits related to alleged harms associated with social media use. In a separate case, a jury awarded damages to a plaintiff in litigation involving Google and Meta. Meta has also recently been ordered to pay $375 million in a separate case brought by New Mexico’s attorney general.

Beyond seeking monetary awards of $60 millions, plaintiffs and state authorities have also called for changes to platform design and online safety measures affecting minors. Additional lawsuits involving social media platforms and youth safety issues remain ongoing in US courts.

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Meta reportedly cuts 8,000 jobs as AI investment and restructuring accelerate globally

Meta is reportedly cutting about 8,000 jobs globally as part of a restructuring aimed at reducing costs while increasing spending on AI infrastructure and products.

According to media reports, the cuts represent about 10% of Meta’s workforce and are intended, in part, to offset the cost of the company’s expanding AI investments. The reductions are expected to affect engineering and product teams in particular, with employees in several regions notified as the restructuring begins.

Reports also indicate that around 7,000 employees are being reassigned to new AI-focused teams, while thousands of open roles have been closed. The restructuring reflects Meta’s effort to redirect resources towards AI products, infrastructure and agent-based tools across its platforms.

In Ireland, reports said around 350 jobs were affected, representing a significant share of Meta’s local workforce. The company has not publicly confirmed all regional figures, but said affected employees and authorities had been notified.

The cuts come as Meta prepares for a major increase in AI-related capital expenditure. Reports say the company expects spending to rise sharply in 2026 as it builds infrastructure for AI models, personalised assistants and other AI-powered features across Facebook, Instagram, WhatsApp and its wider product ecosystem.

Staff concerns have also emerged around the pace of restructuring, internal communication and workplace monitoring linked to AI development. Reports cited employee unease over plans to monitor computer activity as part of AI training practices.

Why does it matter?

Meta’s restructuring shows how major technology companies are reallocating labour and capital around AI. The reported job cuts are not only a cost-saving exercise, but part of a wider shift in which companies are redirecting resources towards AI infrastructure, automation and agentic systems. The development also highlights a growing tension in the tech sector: AI is being presented as a long-term growth engine, while workers face uncertainty over how that transition will reshape roles, teams and investment priorities.

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Italy lawsuit against Meta and TikTok tests child safety rules

A first hearing has taken place at the Milan Business Court in a case brought by MOIGE, the Italian Parents’ Movement, and a group of families against Meta and TikTok over the protection of minors on social media platforms.

According to MOIGE, the class-wide injunction seeks to protect around 3.5 million Italian children aged between 7 and 14 who are allegedly active on social platforms despite age restrictions. The organisation described the case as the first such action in Europe focused on protecting minors in the digital sector.

The hearing focused on preliminary objections, including challenges by lawyers for Meta and TikTok to the jurisdiction and competence of Italian courts to rule on the companies’ conduct. MOIGE said the platforms also contested documents submitted by its legal team concerning the alleged effects of recommendation algorithms on minors.

According to MOIGE, the documents refer to concerns around variable reinforcement mechanisms, infinite scrolling and behavioural profiling allegedly designed to maximise engagement among younger users. The organisation and the families’ lawyers argue that such design features raise concerns over addictive behaviour and wider risks to children’s well-being.

MOIGE’s lawyers urged the court to proceed quickly, arguing that delays could prolong potential harm affecting minors in Italy. The case will continue with further hearings, with the court expected to set the next steps in the proceedings.

Why does it matter?

The case could become an important test of how courts assess platform responsibility for children’s safety, age restrictions and recommendation systems. If the action advances, it may contribute to wider European debates on algorithmic design, age verification, addictive platform features and whether child online safety should be treated not only as a content moderation issue, but also as a consumer protection and public health concern.

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CJEU backs fair remuneration for press publishers

The Court of Justice of the European Union (CJEU) has ruled that member states may allow press publishers to claim fair remuneration when they authorise online service providers to use their publications.

The judgement came in a case involving Meta Platforms Ireland’s challenge to an Italian Communications Regulatory Authority decision on criteria for determining fair remuneration for online use of press publications. Meta argued that the Italian framework conflicted with EU rules on publishers’ rights under the Digital Single Market copyright directive.

The CJEU found that a fair remuneration right for publishers can be compatible with EU law if the payment is consideration for authorising online service providers to use press publications. Publishers must also be able to refuse authorisation or grant it free of charge, and online service providers cannot be required to pay for it when they do not use the publications.

The ruling also says online service providers may be required to negotiate with publishers without limiting content visibility during talks and to provide data needed to calculate remuneration. The CJEU said such obligations may restrict the freedom to conduct a business, but appear justified where they help ensure fair negotiations and support EU objectives on copyright, media pluralism, and publishers’ ability to recoup investments.

The CJEU also found that powers granted to AGCOM to set criteria, determine remuneration in the event of disagreement, ensure compliance with information obligations, and impose penalties may be permissible if they support the effective implementation of publishers’ rights.

The final assessment remains for the national court, which must verify whether the Italian legislation satisfies the conditions identified by the CJEU.

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