Italy Orders Meta to Suspend WhatsApp AI Chatbot Ban

Italy's antitrust regulator has instructed Meta Platforms to immediately suspend a policy that bars third-party AI chatbots from being integrated into WhatsApp, citing potential abuse of the company's dominant market position.

The Italian Competition Authority, known as AGCM, issued the order on Wednesday as part of an ongoing probe into Meta's practices. The authority determined that the policy, which prohibits businesses from using WhatsApp's business API to distribute general-purpose AI chatbots, could restrict market access, innovation and technical development in the AI chatbot sector, ultimately harming consumers.

"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 AGCM stated. It added that the policy risks causing "serious and irreparable harm to competition" during the investigation.

Policy Background and Changes

Meta updated its WhatsApp business API policy in October, explicitly banning the use of the API for offering third-party AI chatbots. The change, set to take full effect in January, targets general-purpose bots such as those from OpenAI's ChatGPT, Perplexity and Anthropic's Claude. Businesses using AI for customer service functions, like automated support for retailers, are exempt and can continue operations.

Meta has maintained that the API was not intended as a distribution platform for AI chatbots. In a statement, the company emphasized alternative channels for AI providers, including app stores, websites and partnerships. "The emergence of AI chatbots on our Business API put a strain on our systems that they were not designed to support," Meta said.

The policy shift prompted the AGCM to expand its investigation in November, initially focused on broader Meta practices but now zeroing in on the API restrictions. Regulators expressed concerns that the ban could entrench Meta's own Meta AI chatbot within WhatsApp, limiting choices for users in Europe's largest messaging app by user base.

Broader Regulatory Scrutiny

The Italian action aligns with heightened European oversight of Big Tech's AI integrations. Earlier this month, the European Commission launched a separate investigation into the same policy, probing whether it violates EU digital markets rules by preventing third-party AI providers from accessing WhatsApp users in the European Economic Area.

Commission officials highlighted risks that the restrictions could stifle innovation and competition, echoing the AGCM's findings. The probe could lead to fines or mandated changes if violations are confirmed.

Italy has been particularly aggressive in enforcing digital competition laws. In recent years, the AGCM has fined Meta and other platforms for issues ranging from data privacy to unfair commercial practices. This case marks another front in the battle over AI governance, as regulators grapple with how dominant apps like WhatsApp—used by over two billion people globally—shape emerging technologies.

Meta's Response and Next Steps

Meta described the AGCM's decision as "fundamentally flawed," rejecting the notion that WhatsApp functions as an app store for AI services. "The route to market for AI companies are the app stores themselves, their websites and industry partnerships; not the WhatsApp Business Platform," the company stated in an emailed response. Meta confirmed it will appeal the order.

The suspension remains in effect pending the investigation's outcome, which could extend for months. During this period, third-party AI chatbots may continue to be offered via the API, preserving access for developers and users.

Industry observers note that the ruling could influence similar policies across Meta's ecosystem, including Instagram and Facebook Messenger. It also underscores growing tensions between U.S. tech giants and European regulators, who prioritize consumer protection and market openness in the AI era.

WhatsApp, acquired by Meta in 2014, dominates messaging in Italy and much of Europe, with strict data privacy rules under the EU's General Data Protection Regulation adding layers to compliance challenges.

As AI chatbots proliferate, this case highlights the delicate balance between platform control and open innovation. Developers from affected companies, including OpenAI, have not publicly commented, but the decision provides temporary relief amid the policy uncertainty.

The AGCM's move is part of a wave of antitrust actions targeting AI dominance. Similar probes are underway in the U.S. and elsewhere, focusing on how tech leaders like Meta, Google and Microsoft integrate generative AI into consumer products.

For now, the suspension ensures that WhatsApp users in Italy—and potentially across Europe—retain access to diverse AI tools, fostering a more competitive landscape in real-time conversational AI.