Italy’s Antitrust Action Against Meta: What the WhatsApp AI Chatbot Order Means for Competition Law
Introduction
Regulatory agencies throughout Europe have stepped up their monitoring of digital communication platforms because of the increased use of Artificial Intelligence in the digital domain. Messaging services have evolved into being more than just messaging systems, they now serve as a gateway for Artificial Intelligence services, Business Tools and Digital Marketplaces. In light of this evolution, the Competition Authority in Italy has taken action against Meta Platforms and ordered Meta to cease activities on WhatsApp that are deemed to restrict the ability of other companies to sell AI-based chatbots. This action highlights the concerns surrounding Gatekeeping Power, Market Foreclosure and Innovation Suppression. This proceeding will also raise questions regarding the application of Competition Law to the actions of Dominant Digital Platforms, where they leverage their own ecosystems to promote their own AI products to the detriment of competitors.
Background of the Case
In December 2025, Italy’s competition authority, the Autorità Garante della Concorrenza e del Mercato (AGCM), ordered Meta Platforms to suspend certain contractual terms governing WhatsApp. These terms allegedly prevented or restricted the operation of third-party AI chatbots on WhatsApp’s platform.
The decision was issued as an interim measure during an ongoing antitrust investigation. According to the AGCM, the disputed terms risked excluding competing AI chatbot providers from accessing a critical digital channel, thereby distorting competition and harming consumer choice.
Why WhatsApp Matters as a Digital Gateway
WhatsApp is situated uniquely within the European digital landscape. It has hundreds of millions of users throughout the entire European Union; therefore, it is an integral part of the communication infrastructure that supports communications between individual consumers and companies as well as between companies and their service providers. AI chatbot developers depend heavily upon WhatsApp as it provides the ability to connect directly with consumers in real-time, which is critical to their success as business offers.
According to the Italian regulator's opinion, a corporation that controls the ability to communicate via such a popular platform has a tremendous influence over innovation within that market as it essentially operates as a gatekeeper between the company creating an innovative service and the consumer using that service. If Meta is permitted to stop competing AI chatbot developers while providing more productive and useful offers than those offered by competing developers, it is likely that competing developers will be unable to market and distribute their innovative products at sufficient scale to remain competitive.
Alleged Abuse of Dominant Position
Under EU and national competition law, companies holding a dominant market position bear a special responsibility not to distort competition. The AGCM’s concern is that Meta may have abused WhatsApp’s dominance by:
- Restricting market access for rival AI chatbot providers
- Limiting technical development by preventing interoperability
- Strengthening Meta’s own AI ecosystem at the expense of competitors
Such conduct, if proven, could amount to an abuse under Article 102 of the Treaty on the Functioning of the European Union (TFEU). Importantly, the authority emphasised that even contractual terms—rather than explicit bans—can have exclusionary effects when imposed by a dominant platform.
Meta’s Response and Infrastructure Argument
Meta has openly condemned the Italian ruling as “fundamentally flawed,” arguing that third-party AI chatbots represent a major economic burden to the infrastructure and risk the performance, safety, and user enjoyment of WhatsApp.
Although the protection of infrastructure is a valid issue of concern, competition authorities commonly look at whether the justifications for such restrictions are appropriate and non-discriminatory. One of the principal legal issues is whether the restrictions imposed by Meta were applied in a uniform manner or whether they were selectively imposed in favour of Meta's AI services. If the restrictions are asymmetrical in application, they may be viewed as anti-competitive rather than as legitimate technical safeguards.
Link to the EU’s Digital Markets Framework
The Italian case fits into a wider EU context in relation to their efforts to regulate the actions of large technology companies with the use of prior (ex-ante) regulation as contained in the Digital Markets Act (DMA). The DMA has put in place obligations on a set of gatekeepers to make available to third parties on a non-discriminatory basis in order to maintain equitable access, interoperability and no discrimination against those parties.
While the Italian case has been brought pursuant to an Italian competition law, its philosophy is consistent with that of the DMA in that dominant digital platforms should not undertake actions that use their control over their core products and services to prevent other companies from being able to innovate. The trend with some EU national regulators is to be increasingly willing to take swift action through the application of interim measures rather than await many years for final decisions.
Implications for AI Developers and Platforms
The Italian order signifies to developers of AI-based chatbots that competitive access to AI technology via messaging services is an important factor for regulatory bodies. The order also serves as a warning to the large incumbent organisations that are establishing a foothold in the messaging services market to integrate AI into their already established platforms that they will not be protected from competition laws.
Additionally, the overall case showcases the growing consensus amongst regulatory agencies regarding the role of competition in the development of AI. If a handful of large companies are allowed to control both the infrastructure and the AI technology being operated on top of that infrastructure, the result will likely be the development of closed ecosystems that eliminate or greatly reduce the potential for technology diversity.
Conclusion
Italy's move against Meta highlights a significant intersection between competitive laws and artificial intelligence. The Italian antitrust authority has reinforced the principle that digital gatekeepers cannot use contractual methods to block off access to competition in targeting WhatsApp's restrictive terms. As AI becomes a larger part of our day to day digital services, regulatory bodies will likely continue to increase their scrutiny on platform behaviour. The result of this investigation will impact not just the Metaverse's AI strategy, but also create a baseline for future European regulators' methods of balancing innovation versus competition versus consumer choice in an increasingly AI-driven digital marketplace.
References
- https://www.reuters.com/sustainability/boards-policy-regulation/italy-watchdog-orders-meta-halt-whatsapp-terms-barring-rival-ai-chatbots-2025-12-24/
- https://techcrunch.com/2025/12/24/italy-tells-meta-to-suspend-its-policy-that-bans-rival-ai-chatbots-from-whatsapp/
- https://www.communicationstoday.co.in/italy-watchdog-orders-meta-to-halt-whatsapp-terms-barring-rival-ai-chatbots/
- https://www.techinasia.com/news/italy-watchdog-orders-meta-halt-whatsapp-terms-ai-bot


