Italy’s Competition Authority (AGCM) has issued an interim order forcing Meta to suspend its controversial policy prohibiting third-party companies from distributing general-purpose AI chatbots via WhatsApp’s Business API, citing preliminary evidence of abuse of dominant position that could cause “serious and irreparable harm” to competition in the AI services market.
The decision, announced Wednesday (December 24, 2025), stems from an ongoing investigation launched in November 2025—expanded from an earlier probe into Meta’s data practices—to examine whether the October policy change unfairly restricts rivals like OpenAI (ChatGPT), Anthropic (Claude), Perplexity, and smaller players such as Poke from reaching WhatsApp’s massive user base.
“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. “Moreover, while the investigation is ongoing, Meta’s conduct may cause serious and irreparable harm to competition in the affected market, undermining contestability.”
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The policy, set to take effect in January 2026, would block non-business-specific AI chatbots from integration through the WhatsApp Business API—effectively preventing users from accessing third-party generative AI tools directly within the app.
Business-oriented AI applications, such as retailer customer service bots, remain permitted.
Meta swiftly condemned the ruling as “fundamentally flawed,” insisting the Business API was never intended as a distribution platform for consumer AI chatbots.
“The emergence of AI chatbots on our Business API put a strain on our systems that they were not designed to support,” a company spokesperson said in an emailed statement. “The Italian authority assumes WhatsApp is somehow a de facto app store. The route to market for AI companies are the app stores themselves, their websites, and industry partnerships—not the WhatsApp Business Platform. We will appeal.”
The Italian action aligns with parallel scrutiny from the European Commission, which opened a formal investigation on December 11, 2025, into whether Meta’s restrictions “prevent third-party AI providers from offering their services through WhatsApp in the European Economic Area (EEA).”
Brussels has raised concerns under the Digital Markets Act (DMA), which designates Meta’s messaging services as “gatekeeper” platforms requiring fair access for competitors, with potential fines up to 10% of global revenue if violations are confirmed.
WhatsApp, with over 2 billion monthly active users globally and dominant penetration in Europe (especially Italy, where usage exceeds 85% of smartphone owners), represents a critical distribution channel for AI services.
The policy change threatened to consolidate Meta AI—integrated natively into WhatsApp since mid-2025—as the default option, potentially stifling innovation and consumer choice by forcing users to switch apps or platforms for alternative AI tools.
The AGCM’s precautionary measure requires Meta to halt enforcement pending full investigation outcomes, with potential fines up to 10% of global annual turnover (approximately €13.8 billion based on 2024 figures) if abuse is confirmed.
Meta has 30 days to comply and submit observations.
Analysts view the order as a significant win for AI competitors and a test case for DMA enforcement.
Meta shares dipped modestly in after-hours trading, reflecting investor concerns over escalating European antitrust risks. The company has vowed to challenge the decision through administrative and judicial channels, potentially escalating to the European Court of Justice if needed.
The mounting regulatory pressure, which coincides with ongoing DMA cases against Apple’s App Store rules and Google’s ad tech practices, adds to the growing standoff between Washington and Brussels, which has escalated this week following a targeted visa ban on EU policymakers.