Key takeaways
The Italian Competition Authority, known as AGCM, issued the order on Wednesday as part of an ongoing investigation into whether Meta is abusing its dominant market position by excluding third-party AI services from WhatsApp while integrating its own Meta AI assistant into the platform.
Regulator warns of competitive harm
According to AGCM's statement, the contractual conditions "completely exclude Meta AI's competitors in the AI chatbot services market from the WhatsApp platform."
The regulator warned that Meta's conduct could restrict "output, market access or technical development in the AI chatbot services market," potentially harming consumers.
The authority said it is coordinating closely with the European Commission to address Meta's conduct "in the most effective manner."
The investigation, which AGCM opened in July, was expanded in November to include updated terms for WhatsApp's business platform following contractual changes Meta introduced in October.
A Meta spokesperson pushed back strongly against the decision, calling it "fundamentally flawed."
The spokesperson stated that the emergence of AI chatbots "put a strain on our systems that they were not designed to support."
"We will appeal," the spokesperson added, according to Reuters.
In separate comments to The Wall Street Journal, a Meta spokesman argued that "The Italian authority assumes WhatsApp is somehow a de facto app store."
The company has maintained that WhatsApp's Business Application Programming Interface was never designed to support third-party chatbot traffic and that AI markets remain highly competitive through alternative channels, including app stores, search engines, and operating systems.
Broader European regulatory push
The Italian action comes amid intensifying scrutiny of Big Tech firms across Europe.
The European Commission launched its own formal antitrust investigation into Meta's WhatsApp AI policy in early December, examining whether the October policy changes breach EU competition rules across the European Economic Area.
Italy was carved out of the EU-level probe to avoid duplicating proceedings.
EU Competition Commissioner Teresa Ribera stated at the time: "We must ensure European citizens and businesses can benefit fully from this technological revolution and act to prevent dominant digital incumbents from abusing their power to crowd out innovative competitors."
Meta's updated policy, announced in October, prohibits AI providers from using the WhatsApp Business Solution when AI is the primary service offered, though businesses may still employ AI tools for ancillary functions like automated customer support.
High stakes for AI market competition
The regulatory actions come as Europe's generative AI market experiences rapid growth, with estimates suggesting the sector expanded from approximately $4.4 billion in 2024 to $7.3 billion in 2025.
WhatsApp's massive reach, approximately 3 billion monthly active users globally, including roughly 37 million in Italy, makes it a critical distribution channel for AI services seeking to reach consumers.
If found guilty of antitrust violations, Meta could face fines of up to 10% of its global annual revenue under EU competition rules.
The company has already been hit with significant penalties this year, including a €200 million fine for breaching Digital Markets Act obligations.
The case highlights growing tensions between U.S. technology companies and European regulators, with Europe maintaining significantly tougher oversight compared to more lenient U.S. regulation; an approach that has drawn criticism from the Trump administration and industry leaders.
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