On Wednesday, the Italian Competition Authority (AGCM) said the disputed terms could effectively shut competing AI chatbots out of WhatsApp, raising concerns about reduced competition and potential harm to consumers. The watchdog argued that Meta’s conduct may restrict market access, output and technical development in the rapidly growing AI chatbot services market.
Meta swiftly pushed back against the decision, describing it as “fundamentally flawed.” A company spokesperson said the rapid emergence of AI chatbots had placed unexpected pressure on systems that were not originally designed to support such use at scale, adding that Meta intends to appeal the ruling.
The order marks the latest in a series of regulatory actions by European authorities targeting major technology firms, as the European Union seeks to rein in Big Tech’s market power while still fostering innovation and growth in the digital economy.
The Italian regulator first opened its investigation into Meta in July, focusing on suspected abuse of dominance linked to WhatsApp. In November, the probe was expanded to include updated contractual terms governing WhatsApp’s business platform. According to AGCM, those conditions effectively exclude competitors to Meta AI from operating within the WhatsApp ecosystem.
“These contractual conditions completely exclude Meta AI’s competitors in the AI chatbot services market from the WhatsApp platform,” the authority said, noting that such practices could distort competition.
The case is also drawing scrutiny at the EU level. European antitrust regulators launched a parallel investigation last month into similar allegations against Meta, underscoring the seriousness of the concerns and the coordinated approach being taken across the bloc.
Europe’s assertive regulatory stance stands in contrast to the more permissive environment in the United States and has prompted pushback from U.S. technology companies. It has also attracted criticism from the administration of U.S. President Donald Trump, which has argued that European regulators are unfairly targeting American firms.
AGCM said it is working closely with the European Commission to ensure Meta’s conduct is addressed “in the most effective manner,” signalling that further regulatory action could follow depending on the outcome of ongoing investigations.