Italy Orders Meta to Suspend WhatsApp Policy Blocking Rival AI Chatbots from Platform

Italy tells Meta to suspend its policy that bans rival AI chatbots from WhatsApp | TechCrunch

Italy has ordered Meta to suspend its policy that bans companies from using WhatsApp's business tools to offer their own AI chatbots on the popular chat app. The Italian Competition Authority (AGCM) on Wednesday said it had found enough cause in its ongoing investigation into whether Meta was abusing its dominant position in the market to offer its Meta AI chatbot within WhatsApp to order the suspension of the policy. "Meta's conduct appears to constitute an abuse, since it may limit production, market access, or technical developments in the AI Chatbot services market, to the detriment of consumers," the Authority wrote. "Moreover, while the investigation is ongoing, Meta's conduct may cause serious and irreparable harm to competition in the affected market, undermining contestability." The AGCM in November had broadened the scope of an existing investigation into Meta, after the company changed its business API policy in October to ban general-purpose chatbots from being offered on the chat app via the API. Meta has argued that its API isn't designed to be a platform for the distribution of chatbots, and that people have more avenues beyond WhatsApp to use AI bots from other companies. The policy change, which goes into effect in January, would affect the availability of AI chatbots from the likes of OpenAI, Perplexity, and Poke on the app. The policy doesn't affect businesses that are using AI to serve customers on WhatsApp. For instance, a retailer running an AI-powered customer service bot won't be barred from using the API. Only AI chatbots like ChatGPT or Claude are prohibited from being distributed via the API. The European Commission this month also launched an investigation into the new policy, raising concerns that it may "prevent third-party AI providers from offering their services through WhatsApp in the European Economic Area ('EEA')." Meta did not immediately respond to a request for comment.

Italy watchdog orders Meta to halt WhatsApp terms barring rival AI chatbots

MILAN, Dec 24 (Reuters) - Italy's antitrust authority (AGCM) on Wednesday ordered Meta Platforms (META.O), opens new tab to suspend contractual terms that could shut rival AI chatbots out of WhatsApp, as it investigates the U.S. tech group for suspected abuse of a dominant position. A spokesperson for Meta called the decision "fundamentally flawed," and said the emergence of AI chatbots "put a strain on our systems that they were not designed to support". The move is the latest in a string by European regulators against Big Tech firms, as the EU seeks to balance support for the sector with efforts to curb its expanding influence. Meta's conduct appeared capable of restricting "output, market access or technical development in the AI chatbot services market", potentially harming consumers, AGCM said. In July, the Italian regulator opened the investigation into Meta over the suspected abuse of a dominant position related to WhatsApp. It widened the probe in November to cover updated terms for the messaging app's business platform. "These contractual conditions completely exclude Meta AI's competitors in the AI chatbot services market from the WhatsApp platform," the watchdog said. EU antitrust regulators launched a parallel investigation into Meta last month over the same allegations. Europe's tough stance - a marked contrast to more lenient U.S. regulation - has sparked industry pushback, particularly by U.S. tech titans, and led to criticism from the administration of U.S. President Donald Trump. The Italian watchdog said it was coordinating with the European Commission to ensure Meta's conduct was addressed "in the most effective manner". Reporting by Elvira Pollina; Editing by Alexander Smith Our Standards: The Thomson Reuters Trust Principles., opens new tab

Rome pushes Meta to allow other AIs on WhatsApp

Rome (AFP) - Italian regulators ordered Meta on Wednesday to open its WhatsApp chat platform to rival AI chatbots as it and EU authorities pursue a probe that the US tech giant is abusing its dominant market position. Meta has integrated Meta AI across the company's platforms, which include Facebook and Instagram, that serve billions of users globally. In October, Meta introduced new contractual conditions that will apply from January 15 that Italy's competition regulator said "completely exclude Meta AI's competitors from the WhatsApp platform in the AI Chatbot services market." Earlier this month the European Commission opened an antitrust probe to determine if the way Meta is rolling out AI features in WhatsApp breaches the bloc's competition rules. Meta AI is a generative AI chatbot that can interact with users. Such AI chatbots provide a new way for users to search for and obtain information and services, and thus can supplant browsers. Locking WhatsApp's more than three billion users into Meta AI could potentially give the company a commercial advantage over rival AI chatbots. Italy's competition regulator, which opened its probe in July, said that following a review of briefs submitted as part of the investigation that "Meta's conduct appears to constitute an abuse, since it may limit production, market access or technical developments in the AI Chatbot services market, to the detriment of consumers." It issued an interim order for Meta to suspend the terms and allow rival AI chatbots to use WhatsApp while its investigation continues. The interim order is necessary as "Meta's conduct may cause serious and irreparable harm to competition in the affected market," it added. The Italian regulator said it would coordinate with the European Commission "to ensure that Meta's conduct is addressed in the most effective manner." When the EU antitrust probe was announced earlier this month WhatsApp pushed back against the claims that its new terms hindered competition as "baseless". Meta already faces the risk of heavy fines under the bloc's Digital Services Act (DSA), which regulates content. One DSA case accuses Meta of failing to grant researchers sufficient access to public data, another focuses on accusations Meta platforms Facebook and Instagram do not provide user-friendly ways to flag illegal content or challenge content-moderation decisions. EU regulators are also investigating Facebook and Instagram over fears they are not doing enough to combat the addictive nature of their platforms for children. Meta has separately appealed against a 200-million-euro fine imposed this year under the bloc's Digital Markets Act competition law over its policy asking users to choose between an ad-free subscription and a free, ad-supported service.

Italy watchdog orders Meta to halt WhatsApp terms barring rival AI chatbots: Report

Italy's competition authority (AGCM) has instructed Meta to stop enforcing rules that may obstruct competing AI chatbots from operating on WhatsApp. With the investigation focused on potential monopolistic behaviour by Meta, the company contends that the decision is misguided and vows to challenge it in court. Italy's antitrust authority (AGCM) on Wednesday ordered Meta Platforms to suspend contractual ⁠terms that could shut rival AI chatbots out of WhatsApp, as it investigates the U.S. tech group for suspected abuse of a dominant position. A spokesperson for Meta called the decision "fundamentally flawed," and said the emergence of AI chatbots "put a strain on our systems that they were not designed to support". "We will appeal," the spokesperson added. The move is the latest in a string by European regulators against Big Tech firms, as the EU seeks to balance support for the sector with efforts to curb its expanding influence. Meta's conduct appeared capable of restricting "output, market access or technical development in the AI chatbot services market", potentially harming consumers, AGCM said. In July, the Italian regulator opened the investigation into Meta over the suspected abuse of a dominant position related to WhatsApp. It widened the probe in November to cover updated terms for the messaging app's business platform. "These contractual conditions completely exclude Meta AI's competitors in the AI chatbot services market from the WhatsApp platform," the watchdog said. EU antitrust regulators launched ⁠a parallel ⁠investigation into Meta last month over the same allegations. Europe's tough stance - a marked contrast to more lenient U.S. regulation - has sparked industry pushback, particularly by U.S. tech titans, and led to criticism from the administration of U.S. President Donald Trump. The Italian watchdog said it was coordinating with the European Commission to ensure Meta's conduct was addressed "in the most effective manner".

Italy Targets Meta Over WhatsApp's AI Strategy, Orders Immediate Halt To Terms That Could Crush Competition From Rival Chatbots - Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG)

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. See Also: Meta To Reportedly Serve Up 'Mango' And 'Avocado' AI Models In 2026 To Rival Google's 'Nano Banana' 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. Benzinga Edge Stock Rankings show Meta with a positive short-term price trend, though the stock remains under pressure over the medium and long term. Click here for deeper insights into the stock, its peers and competitors. Read Next: This Nvidia-Powered AI Infrastructure Stock Is Now Significantly Underpriced Following Steep Pullback: Value Score Spikes Photo Courtesy: gguy on Shutterstock.com Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AAPLApple Inc$273.56-0.09%OverviewGOOGAlphabet Inc$315.61-0.02%METAMeta Platforms Inc$666.31-0.19%Market News and Data brought to you by Benzinga APIs

Italy Watchdog Stops Meta From Barring Rival AI Bots On WhatsApp

Onboarding users is a critical aspect for any business. To achieve this, companies may rely on platforms that have network effects, which can enhance a product's value and reach as more users engage with it. WhatsApp, as one of the more prominent communication platforms having a huge global user base, has the ability to generate the desired network effects for major AI companies' chatbots. Just like how "Googling" has become synonymous with searching, "WhatsApp" has also become a common term for messaging, with people often saying "WhatsApp me" when they mean "text me". So ideally, WhatsApp should not exploit the dominant position that it enjoys in Italy or elsewhere. To explain, while allowing non-AI companies to utilise WhatsApp's Business API, Meta should not discriminate against AI companies seeking to utilise the same just because they are competitors in the AI chatbot business. And if it does discriminate, anti-competitive authorities worldwide should hold Meta accountable. Elsewhere, Meta has not announced any plans to discontinue the Meta AI chatbot on WhatsApp in regions outside Italy as of now, suggesting that the in-house AI service may continue to operate on the messaging platform. Importantly, if Meta decides to ban third-party AI chatbots on WhatsApp outside Italy, users who don't want to install a separate app or access a web-based version of rival AI chatbots may be compelled to use Meta AI. Notably, this may be an effort to divert users toward its own AI chatbot and potentially kill competition, at least on its own platform if not in the overall AI market. Just 22 days before WhatsApp planned to block AI-powered chatbots like ChatGPT and Perplexity on its messaging platform, Italy's competition authority stepped in to stop its parent company Meta from doing so. "Meta's conduct may cause serious and irreparable harm to competition in the affected [AI] market, undermining contestability," reads the Italian competition authority's press release. It also notes that their investigation is still ongoing, and Meta blocking the third-party AI-powered chatbots on its platform "appears to constitute an abuse". "It may limit production, market access or technical developments in the AI Chatbot services market to the detriment of consumers," reasoned the authority. This essentially means that according to Italy's competition authority, namely Autorità Garante della Concorrenza e del Mercato (AGCM), Meta excluding third-party AI chatbots can disincentivise AI companies as they can neither access nor reach the huge user base of WhatsApp. And this can, in turn, impact technical innovations in the AI sector. WhatsApp message about ChatGPT on its platform (Image source: MediaNama) Meanwhile, a Meta spokesperson called this decision "fundamentally flawed," remarking that the emergence of AI chatbots "put a strain on our systems that they were not designed to support". Notably, Meta has decided to appeal against this verdict. In October, WhatsApp updated its Business Application Programming Interface (API) policy to restrict AI providers from offering AI-powered chatbot services on the platform. This impacted the likes of ChatGPT and Perplexity, as well as a few Indian AI companies, like Haptik AI and PuchAI, which rely on WhatsApp as an intermediary to connect with end-users. The policy bars AI providers from accessing WhatsApp's Business Solution "for the purposes of providing, delivering, offering, selling, or otherwise making available" AI technologies when such technologies are the primary functionality that is offered. WhatsApp warned that it can terminate accounts that violate these new terms. However, businesses may still use AI providers as third-party vendors, provided they operate with the following restrictions: The communications giant's move comes as AI companies are seeking various distribution channels and strategies, including utilising messaging platforms like WhatsApp and Telegram. For context, Microsoft uses Telegram as one of its distribution channels by integrating Copilot as an AI bot into the messaging platform. When WhatsApp announced this move in October, a Meta spokesperson told TechCrunch that the AI chatbots' distribution was an unexpected use of the WhatsApp Business API. Thus, the increased message volume that third‑party AI bots generated apparently strained the platform. And, Meta reinforced that WhatsApp's Business API is meant for sending customer‑support messages and timely updates. Pertinently, Meta potentially had no mechanism to determine how much it should charge AI providers using its APIs, meaning the tech giant could have been losing valuable revenue while facing the strain of large message volumes.

Italy orders Meta to suspend WhatsApp AI terms amid antitrust probe - report By Investing.com

Investing.com -- Italy's antitrust authority has ordered Meta Platforms (NASDAQ:META) to suspend certain WhatsApp contractual terms that regulators say could exclude rival artificial intelligence chatbots from the messaging platform. The Italian Competition Authority (AGCM) said on Wednesday that the terms under investigation may constitute an abuse of Meta's dominant market position, potentially limiting competition in the emerging AI chatbot services market. The watchdog warned that Meta's conduct could restrict output, market access, or technological development, ultimately harming consumers. Reuters in a report said that Meta pushed back against the decision, with a company spokesperson describing the ruling as "fundamentally flawed." The spokesperson added that the rapid growth of AI chatbots had placed pressure on systems that were "not designed to support" such widespread use, the report said. The investigation was first opened in July, when AGCM began examining Meta's alleged abuse of dominance linked to WhatsApp. In November, the probe was expanded to include updated terms governing WhatsApp's business platform. According to the regulator, these contractual conditions effectively prevent competing AI chatbot providers from accessing WhatsApp. European Union antitrust regulators launched a parallel investigation last month over the same concerns, underscoring growing scrutiny of Big Tech firms across the bloc. AGCM said it is coordinating closely with the European Commission to address Meta's conduct "in the most effective manner." The case is part of a broader regulatory push in Europe aimed at curbing the influence of major technology companies while still supporting innovation. This tougher European stance contrasts with comparatively lighter regulation in the United States and has drawn criticism from U.S. technology leaders as well as from the administration of President Donald Trump.

Italy watchdog orders Meta to halt WhatsApp terms barring rival AI chatbots

MILAN, Dec 24 (Reuters) - Italy's antitrust authority (AGCM) on Wednesday ordered Meta Platforms to suspend contractual terms that could shut rival AI chatbots out of WhatsApp, as it investigates the U.S. tech group for suspected abuse of a dominant position. A spokesperson for Meta called the decision "fundamentally flawed," and said the emergence of AI chatbots "put a strain on our systems that they were not designed to support". "We will appeal," the spokesperson added. The move is the latest in a string by European regulators against Big Tech firms, as the EU seeks to balance support for the sector with efforts to curb its expanding influence. Meta's conduct appeared capable of restricting "output, market access or technical development in the AI chatbot services market", potentially harming consumers, AGCM said. In July, the Italian regulator opened the investigation into Meta over the suspected abuse of a dominant position related to WhatsApp. It widened the probe in November to cover updated terms for the messaging app's business platform. "These contractual conditions completely exclude Meta AI's competitors in the AI chatbot services market from the WhatsApp platform," the watchdog said. EU antitrust regulators launched a parallel investigation into Meta last month over the same allegations. Europe's tough stance - a marked contrast to more lenient U.S. regulation - has sparked industry pushback, particularly by U.S. tech titans, and led to criticism from the administration of U.S. President Donald Trump. The Italian watchdog said it was coordinating with the European Commission to ensure Meta's conduct was addressed "in the most effective manner". (Reporting by Elvira Pollina; Editing by Alexander Smith)