Meta’s European Commission filing on February 9 2026 accuses the company of breaching antitrust rules by blocking third‑party general‑purpose AI assistants from its WhatsApp messaging service. The Commission’s complaint centers on a policy update that Meta rolled out in October 2025 and that took effect on January 15 2026, which effectively barred external AI tools from the platform. The action follows the EU’s broader scrutiny of Meta’s dominance in both messaging and AI markets, and it could force the company to rethink its WhatsApp business model and its European revenue mix.
Meta’s response, issued the same day, dismissed the regulator’s claims and argued that the policy does not restrict user access to AI tools, noting that users can still obtain assistants through other channels. The company’s stance reflects its broader strategy to prioritize its own Meta AI offerings while maintaining a competitive edge in the rapidly evolving AI landscape. The Commission’s concern is that the policy could create “serious and irreparable harm to competition” by limiting the entry of rival AI assistants into a market where WhatsApp commands a dominant share of global messaging traffic.
The regulatory charge comes at a time when Meta’s financial performance is under intense scrutiny. In its Q4 2025 earnings, Meta reported revenue of $59.9 billion, a 24% year‑over‑year increase, and diluted EPS of $8.88, beating analyst expectations of $8.19 by $0.69. The revenue lift was driven by a 18% rise in ad impressions and a 6% increase in the average price per ad, underscoring the strength of Meta’s advertising business. However, operating margin slipped to 41% from 48% in Q4 2024, largely due to heightened AI‑related expenses and capital expenditures that reached $72.2 billion in fiscal 2025.
Management’s outlook signals both confidence and caution. CEO Mark Zuckerberg highlighted the company’s progress toward “personal superintelligence” while CFO Susan Li cautioned that operating margins may decline as Meta ramps up AI investments. The company has guided for Q1 2026 revenue of $53.5 billion to $56.5 billion, implying a 23%‑27% year‑over‑year growth, but it also projected 2026 capital expenditures of $115 billion to $135 billion—an increase of roughly 60% over 2025. Investors interpret this aggressive spending as a potential headwind to near‑term profitability, even as it positions Meta for long‑term AI leadership.
The EU’s action is part of a broader regulatory trend. WhatsApp was designated a “Very Large Online Platform” under the Digital Services Act on January 26 2026, obligating it to conduct risk assessments and transparency reporting by May 2026. The Commission’s complaint, therefore, aligns with the EU’s intent to enforce competition and consumer‑protection standards across large digital platforms. Meta’s policy change, which favored its own AI assistant, is viewed as a strategic move to consolidate its AI ecosystem but also raises antitrust concerns about market dominance and the exclusion of competitors.
The market’s reaction to Meta’s Q4 2025 results was mixed. While the earnings beat and strong revenue growth spurred a short‑term rally, the announcement of the 2026 capital‑expenditure guidance—projected to be $115 billion to $135 billion—generated investor concern about cash burn and margin pressure. Analysts noted that the guidance signals a shift toward heavy AI investment, which could erode operating margins in the near term but is expected to underpin future growth.
In summary, the EU’s antitrust charge over WhatsApp’s AI policy is a significant regulatory event that could reshape Meta’s competitive positioning and financial trajectory. The company’s robust Q4 2025 performance and ambitious AI investment plan underscore both its current strength and the potential risks posed by regulatory scrutiny and capital‑intensive expansion.
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