Italy orders Meta to suspend WhatsApp terms blocking rival AI chatbots in antitrust probe

Reviewed byNidhi Govil

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Italy's competition watchdog has ordered Meta to halt WhatsApp contractual terms that could exclude competing AI chatbots from the platform. The AGCM is investigating Meta for suspected abuse of a dominant position, claiming the terms restrict market access and harm consumers. Meta called the decision fundamentally flawed and plans to appeal.

Italy's Antitrust Authority Takes Action Against Meta WhatsApp

Italy's antitrust authority, known as AGCM, ordered Meta Platforms on Wednesday to suspend contractual terms that could effectively shut rival AI chatbots out of WhatsApp

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. The regulatory action comes as part of an ongoing antitrust probe into the U.S. tech giant for suspected abuse of dominant market position related to its popular messaging app

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. The Italian Competition Authority warned that Meta's conduct appeared capable of restricting output, market access, and technical development in the AI chatbot services market, potentially harming consumers

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Source: Reuters

Source: Reuters

Meta Pushes Back Against Regulatory Decision

Meta responded swiftly to the order, with a company spokesperson calling the decision "fundamentally flawed" and announcing plans to appeal

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. The spokesperson argued that the emergence of AI chatbots "put a strain on our systems that they were not designed to support"

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. This defense suggests Meta views the restriction as a technical necessity rather than an anticompetitive strategy, though regulators remain unconvinced.

Investigation Timeline and Scope Expansion

The Italian regulator first opened the investigation into Meta in July over suspected abuse of dominance related to WhatsApp

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. The probe widened in November to cover updated terms for the messaging app's business platform, reflecting growing concerns about Meta's control over access to its ecosystem

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. According to AGCM, "these contractual conditions completely exclude Meta AI's competitors in the AI chatbot services market from the WhatsApp platform"

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. The watchdog emphasized it is coordinating with the European Commission to ensure Meta's conduct is addressed "in the most effective manner"

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European Regulatory Efforts Intensify Against Big Tech

The Italian action represents the latest move in European regulatory efforts against Big Tech firms, as the EU seeks to balance support for innovation with efforts to curb expanding influence

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. EU antitrust regulators launched a parallel investigation into Meta last month over the same allegations, underscoring coordinated scrutiny across the bloc

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. This case matters because it could set precedent for how dominant platforms must handle competition in emerging AI markets, potentially forcing Meta to open WhatsApp to third-party AI services.

Transatlantic Regulatory Divide Widens

Europe's tough stance marks a stark contrast to more lenient U.S. regulation and has sparked industry pushback, particularly from U.S. tech titans

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. The approach has drawn criticism from the administration of U.S. President Donald Trump, highlighting growing transatlantic tensions over tech regulation . As the investigation unfolds, the short-term implications involve whether Meta will successfully appeal the order to suspend contractual terms, while long-term consequences could reshape how platforms with market dominance integrate AI features. Observers should watch for the European Commission's coordinated response and whether other EU member states follow Italy's lead in restricting Big Tech's control over AI chatbot access.

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