Italy’s competition watchdog has instructed Meta to suspend a controversial policy that blocks rival AI chatbots from being distributed on WhatsApp, escalating regulatory pressure on the company’s artificial intelligence strategy in Europe.
The Italian Competition Authority, formally known as the Autorità Garante della Concorrenza e del Mercato, said it has found sufficient grounds to intervene while it continues investigating whether Meta is abusing its dominant position. At the centre of the case is a policy change that prevents companies from using WhatsApp’s business API to offer general-purpose AI chatbots on the platform.
The Authority said Meta’s conduct could amount to an abuse of market power by restricting access, limiting innovation, and distorting competition in the AI chatbot services market. In its statement, the regulator warned that allowing the policy to remain in force during the investigation could cause serious and irreversible harm to competition, ultimately hurting consumers and weakening contestability in the sector.
The dispute stems from a change Meta introduced in October, when it updated its business API rules to ban the distribution of general-purpose AI chatbots on WhatsApp. The policy, scheduled to take effect in January, would prevent AI assistants from companies such as OpenAI and Perplexity from being offered through WhatsApp’s business tools. The move followed Meta’s own rollout of its in-house Meta AI assistant within WhatsApp.
Importantly, the restriction does not apply to all uses of AI on the platform. Businesses can still deploy AI-powered tools for customer service, order tracking, or support functions. What is prohibited are standalone AI chatbots designed to provide general information or conversational assistance, similar to ChatGPT or Claude, when distributed via the WhatsApp Business API.
Meta has defended the policy by arguing that WhatsApp’s business API was never intended to function as a distribution channel for AI chatbot products. According to the company, the surge in AI chatbot usage placed strain on systems that were not built to support that kind of traffic. Meta also maintains that AI providers have many alternative routes to market, including app stores, their own websites, and partnerships with other platforms.
The Italian Authority rejected this framing, at least on a preliminary basis. It suggested that WhatsApp’s scale and reach make it a critical gateway for digital services, particularly in markets like Italy where the messaging app plays a central role in everyday communication. Blocking rival AI chatbots while promoting Meta’s own assistant could therefore tilt the playing field in Meta’s favour.
The case has broader implications beyond Italy. Earlier this month, the European Commission also opened an investigation into the same policy. The Commission said it is examining whether the restriction could prevent third-party AI providers from offering their services through WhatsApp across the European Economic Area, potentially breaching EU competition rules.
Meta has strongly criticised the Italian Authority’s decision, calling it fundamentally flawed. In a statement, the company said the regulator wrongly assumes WhatsApp operates like an app store, arguing instead that the WhatsApp Business Platform is not a primary route to market for AI companies. Meta confirmed it plans to appeal the order.
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