The Italian Competition Authority (AGCM) has ordered Meta to immediately suspend its controversial policy that prohibits rival AI chatbots from operating on WhatsApp's business platform. This directive comes amid an ongoing investigation into whether Meta is abusing its dominant market position by restricting third-party AI services on the popular messaging app.

On Wednesday, the AGCM announced its decision, stating it found sufficient grounds in its probe to warrant the suspension. The authority expressed concerns that Meta's conduct could harm consumers and competition.

"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 Authority wrote. "Moreover, while the investigation is ongoing, Meta’s conduct may cause serious and irreparable harm to competition in the affected market, undermining contestability."
The AGCM's full press release can be found here.

The regulatory scrutiny intensified after Meta updated its business API policy in October, explicitly banning general-purpose AI chatbots from being offered on WhatsApp via its API. This change, set to take effect in January, prompted the AGCM to broaden an existing investigation into Meta in November. More details on WhatsApp's policy change can be found in this TechCrunch report.

Meta has defended its policy, arguing that its API is not designed as a platform for general chatbot distribution and that users have alternative avenues to access AI bots from other companies. However, the ban directly impacts the availability of prominent AI chatbots from developers such as OpenAI, Perplexity, and Poke on the WhatsApp platform. It's important to note that the policy does not affect businesses utilizing AI for customer service within WhatsApp, allowing AI-powered customer support bots to continue operating via the API.

Italy's move is not isolated. The European Commission also launched its own investigation this month into Meta's new policy. The EU regulator shares concerns that the policy could "prevent third-party AI providers from offering their services through WhatsApp in the European Economic Area ('EEA')." Further information on the EU's investigation is available here.

Meta did not immediately respond to requests for comment regarding the AGCM's suspension order.