Italy Opens Investigation Into AI Music Startup Suno Over Unfair Contract Terms

Italy's competition authority, the AGCM, has opened an investigation into Suno, examining whether the AI music startup's terms of service create an unfair imbalance between the company and its users. The probe targets multiple aspects of Suno's contract that the antitrust authority believes may violate Article 33 of Italy's Consumer Code, which protects consumers from terms that disproportionately favor businesses.1

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Broad Powers to Alter Contracts and Services

The AGCM raised concerns that Suno's terms of service grant the company extensive discretion to modify its contract, services, and subscription prices without providing any justification to users. This unilateral contract alteration capability appears to give Suno the authority to change fundamental aspects of the service agreement at will, potentially leaving consumers without recourse or advance notice of significant changes that could affect their usage or costs.2

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Account Suspension and Content Deletion Concerns

Italy's competition authority highlighted that Suno's terms appear to permit the company to suspend, discontinue, or terminate user accounts along with any songs stored in them at any time, for any reason, and without prior notice. This provision raises significant consumer rights questions, as users could potentially lose access to their AI-generated music and account data without warning or explanation. The authority also noted that users may be required to accept additional terms that are not available for review before entering into a contract.3

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Copyright Law and Moral Rights Violations

The investigation places special attention on copyright-related provisions in Suno's terms of service. To use the AI music generator platform, users must grant Suno a license to use their content, which the AGCM stated is defined too broadly and insufficiently specified. More critically, the terms require users to waive their moral rights, which allow authors to control how their work is credited and treated. This waiver of moral rights may directly conflict with Italian copyright law, specifically Articles 20 and following of Law 633/1941, which protects these fundamental authorial rights.1

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The broad content licensing requirements combined with moral rights waivers create a situation where users of the text-to-song generation service may unknowingly surrender significant control over their AI-generated music.

Dispute Resolution and Jurisdictional Issues

The antitrust authority identified problematic provisions regarding how disputes are handled under Suno's terms of service. The contract appears to require consumers to resolve claims through binding individual arbitration in the United States, with limited deadlines and a waiver of class actions. Additionally, the terms state that courts in Massachusetts, where Suno is based, have exclusive jurisdiction over legal claims.2

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This dispute resolution framework effectively forces Italian consumers to navigate the US legal system, potentially creating significant barriers to seeking redress for grievances.

Public Consultation and Next Steps

In the coming weeks, the AGCM will hold a public consultation on the contested terms through its website, allowing national trade associations, chambers of commerce, and recognized consumer groups to participate in the process.1

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This consultation period will provide stakeholders an opportunity to weigh in on the fairness of Suno's contract provisions and their impact on Italian consumers using the AI music startup Suno's services.

Broader Pattern of AI Regulation in Italy

This investigation represents the latest instance of Italy's competition authority taking consumer action against an AI company. Earlier this year, the AGCM concluded investigations into DeepSeek, Mistral, and Nova AI after the three companies agreed to alert their users to hallucinations, which occur when chatbots generate false information.1

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The pattern suggests Italian regulators are actively scrutinizing AI companies' business practices to ensure they comply with consumer protection standards, signaling that AI music and other generative AI services will face increasing regulatory oversight as they expand into European markets.