In a significant move against Big Tech, Italy's competition authority has instructed Meta Platforms to immediately halt specific contractual conditions related to its popular messaging service, WhatsApp. The regulator alleges these terms could stifle competition in the burgeoning artificial intelligence chatbot market.
Antitrust Probe Targets Potential Market Abuse
The Italian Competition Authority, known as AGCM, initiated this action as part of an ongoing investigation into whether Meta is abusing its dominant market position. The probe began in July 2024, focusing initially on WhatsApp's market power. It was expanded in November 2024 to scrutinise updated contract terms for the WhatsApp Business platform.
According to the watchdog, the contested terms could effectively prevent competing AI chatbot services from operating on WhatsApp's platform. The AGCM argues this would grant Meta's own AI services an unfair advantage, potentially locking out rivals completely.
Meta's Strong Rejection and Appeal Plans
Meta has responded forcefully to the Italian order. A company spokesperson labelled the AGCM's decision as "fundamentally flawed". The tech giant defended its position, stating that the integration of third-party AI chatbots places an unexpected burden on WhatsApp's technical infrastructure.
"These systems were not originally designed to support such integrations," the spokesperson explained, highlighting the technical challenges. The company has made its intention clear, stating, "We will appeal" against the ruling.
Broader European Scrutiny on Big Tech
This Italian action is not an isolated case. It aligns with a wider, aggressive regulatory push across the European Union to rein in the power of major technology firms. Last month, EU antitrust regulators launched a separate investigation into Meta over similar competition concerns.
The AGCM confirmed it is collaborating closely with the European Commission to address the issue comprehensively. European authorities have consistently adopted a stricter stance on competition and data privacy than their counterparts in the United States, a policy difference that has sparked criticism from U.S. tech companies and previous administrations.
The core objective of the Italian regulator is to safeguard fair competition in the fast-evolving AI sector. The authority aims to prevent dominant platforms from using their reach to limit market access for competitors, which could ultimately reduce innovation and harm consumer choice.
