Italy’s antitrust authority has ordered Meta Platforms, Inc. (NASDAQ:META) to suspend controversial WhatsApp terms amid an investigation into whether the company unfairly sidelined rival AI chatbot providers.
Italy Orders Meta To Suspend WhatsApp AI-Related Terms
On Wednesday, Italy’s competition watchdog ordered Meta to halt certain WhatsApp contractual terms that regulators say could block competing AI chatbots from accessing the messaging platform, reported Reuters.
The Italian Competition Authority, known as AGCM, said the move comes as part of an ongoing investigation into whether Meta abused its dominant market position through WhatsApp, one of the world’s most widely used messaging apps.
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Regulator Flags Potential Harm To Competition And Consumers
According to the AGCM, Meta’s conduct may have restricted market access, limited innovation and reduced consumer choice in the fast-growing AI chatbot services market.
The watchdog said updated terms tied to WhatsApp’s business platform effectively excluded competitors to Meta’s own AI tools, raising concerns about reduced output and stalled technical development in the sector.
Italy first opened its probe into Meta in July, focusing on WhatsApp’s market power.
The investigation was expanded in November to include revised contractual conditions affecting AI chatbot integration.
Meta Pushes Back, Plans Appeal
Meta strongly criticized the decision, calling it “fundamentally flawed.”
A company spokesperson told the publication that the rapid emergence of AI chatbots has placed heavy demands on WhatsApp’s infrastructure, which was not originally designed to support such services. Meta said it will appeal the ruling.
EU Steps Up Scrutiny Of Big Tech
The Italian action adds to mounting regulatory pressure on U.S. tech giants in Europe, where authorities have taken a tougher stance than their American counterparts.
In April, the EU fined Meta and Apple Inc. (NASDAQ:AAPL) nearly $800 million for breaching the bloc’s newly introduced antitrust rules.
Earlier this month, the European Commission launched an antitrust probe into Alphabet Inc.’s (NASDAQ:GOOG, GOOGL)) Google over concerns that the company uses publishers’ and creators’ content to train its AI models.
On Sept. 7, the EU slapped Alphabet with a $3.5 billion antitrust fine, a decision President Donald Trump criticized as an assault on U.S. companies.
This month, Vice President JD Vance raised concerns over the EU’s reported plans to fine Elon Musk’s X, accusing the bloc of censorship and unfairly targeting U.S. companies.
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