Regulators warn Meta’s AI rollout could lock out competitors and harm innovation across Europe
Italian competition authorities have ordered Meta Platforms Inc. to allow rival artificial intelligence chatbots access to WhatsApp, escalating regulatory scrutiny over claims that the tech giant is abusing its dominant market position.
The directive was issued on Wednesday as Italian and European Union regulators intensify investigations into whether Meta’s integration of its in-house AI tools unfairly restricts competition in the fast-growing AI chatbot market.
Meta has embedded Meta AI across its platforms including Facebook, Instagram, and WhatsApp which collectively serve billions of users worldwide. However, Italy’s antitrust regulator said new contractual terms introduced by Meta in October, and set to take effect from January 15, would effectively shut out competing AI chatbot services from WhatsApp.
According to the regulator, the conditions “completely exclude Meta AI’s competitors from the WhatsApp platform in the AI chatbot services market.”
Earlier this month, the European Commission launched a formal antitrust investigation to assess whether Meta’s deployment of AI features on WhatsApp violates EU competition rules.
Meta AI is a generative chatbot designed to interact directly with users, offering information and services in ways that could increasingly replace traditional web browsers. Regulators argue that restricting WhatsApp’s more than three billion users to Meta AI could give the company an unfair commercial edge over rival developers.
Italy’s competition authority, which opened its own probe in July, said its preliminary assessment indicates that Meta’s actions may constitute an abuse of market power.
“Meta’s conduct appears capable of limiting production, market access and technological development in the AI chatbot services market, to the detriment of consumers,” the regulator said.
As a result, it issued an interim order directing Meta to suspend the disputed contractual terms and allow third-party AI chatbots access to WhatsApp while the investigation is ongoing.
The watchdog said the temporary measure was necessary to prevent “serious and irreparable harm” to competition in the sector. It added that it would work closely with the European Commission to ensure coordinated enforcement.
Meta has rejected the allegations. When the EU investigation was announced, WhatsApp described claims that the new terms restrict competition as “baseless.”
The latest dispute adds to Meta’s growing regulatory challenges in Europe. The company is already facing potential penalties under the Digital Services Act (DSA), which governs online content and platform accountability.
One DSA case accuses Meta of failing to provide researchers adequate access to public data, while another alleges that Facebook and Instagram lack user-friendly systems for reporting illegal content or appealing moderation decisions.
EU regulators are also examining whether Meta’s platforms sufficiently address concerns about addictive design features, particularly their impact on children.
Separately, Meta has appealed a €200 million fine imposed earlier this year under the Digital Markets Act, which penalised the company over its policy requiring users to choose between a paid ad-free service and a free, ad-supported option.
About the Author
