Meta Platforms is facing increasing regulatory pressure in Europe after Italy’s competition watchdog ordered the company to temporarily suspend a controversial WhatsApp policy that restricts the use of third-party AI chatbots. The decision marks a major development in the growing global debate over platform dominance, artificial intelligence competition, and fair market access.
At the heart of the dispute is Meta’s recent change to its WhatsApp Business API policy, which prevents general-purpose AI chatbots from operating on the platform. Italian regulators argue that this move could unfairly strengthen Meta’s market position while harming innovation and competition in the rapidly expanding AI services sector.
As investigations continue at both the national and European Union levels, the case could have far-reaching consequences for how AI tools are distributed through popular messaging platforms like WhatsApp.
Italy’s Competition Authority Steps In
The order was issued by Italy’s Competition Authority, known as the Autorità Garante della Concorrenza e del Mercato (AGCM). In an official statement, the watchdog said that preliminary findings from its investigation suggest Meta may be abusing its dominant position in the messaging and digital services market.
According to AGCM, there is sufficient evidence to justify an interim suspension of Meta’s policy while the investigation is ongoing. The authority warned that allowing the restrictions to take effect could cause “serious and irreparable harm” to competition in the AI chatbot market.
This temporary halt does not conclude the case but ensures that third-party AI services are not immediately excluded while regulators assess the broader implications.
Understanding Meta’s Controversial WhatsApp Policy
The controversy stems from a policy update Meta introduced in October, targeting how businesses use the WhatsApp Business API. Under the revised rules, general-purpose AI chatbots are no longer allowed to operate on WhatsApp using business tools.
If implemented as planned in January, the policy would directly affect several well-known AI assistants, including:
- ChatGPT by OpenAI
- AI tools developed by Perplexity
- Other standalone conversational AI services
These tools often rely on WhatsApp as a distribution channel to interact with users at scale, particularly in regions where the app dominates digital communication.
Why Regulators Are Concerned
Italian regulators believe Meta’s policy could:
- Limit market entry for competing AI providers
- Reduce consumer choice
- Slow innovation in AI chatbot services
- Give Meta’s own AI products an unfair advantage
The AGCM specifically pointed out that restricting access through technical or policy-based barriers may negatively affect production, innovation, and competition in the AI services market.
Because WhatsApp is one of the world’s most widely used messaging platforms, any restrictions imposed by its owner can significantly shape the competitive landscape.
Meta’s Defense: “WhatsApp Is Not an App Store”
Meta has strongly pushed back against the Italian authority’s decision, labeling it “fundamentally flawed.” The company argues that WhatsApp was never designed to function as an open marketplace or app distribution platform for AI chatbots.
In its defense, Meta stated that:
- WhatsApp Business API was not built as a chatbot distribution channel
- AI companies already have other routes to market, such as apps and websites
- The platform infrastructure was not designed to handle large-scale chatbot deployment
Meta emphasized that users can still access rival AI assistants through app stores, web platforms, and partnerships, even if they are not available directly within WhatsApp.
Not All AI Use Is Banned on WhatsApp
One important clarification in the debate is that Meta’s policy does not prohibit all AI usage on WhatsApp.
The policy still allows:
- Businesses using AI for customer support
- Automated responses for customer service
- AI tools embedded within a company’s own operations
For example, a retail brand using an AI-powered chatbot to handle customer queries on WhatsApp would not be affected. The restriction applies mainly to standalone, general-purpose AI assistants that operate independently rather than as part of a specific business service.
This distinction, however, has not eased regulators’ concerns.
Meta AI and the Competition Question
The situation becomes more sensitive because Meta is actively promoting its own AI product, Meta AI, across WhatsApp, Instagram, and other platforms.
From a competition perspective, regulators worry that:
- Meta may be limiting rivals while promoting its own AI
- Platform control could be used to steer users toward Meta AI
- Third-party innovation could be sidelined
This raises classic antitrust questions about self-preferencing, where a dominant platform favors its own services over competitors’.
EU Joins the Scrutiny: A Broader Investigation Begins
Italy is not alone in questioning Meta’s actions. In November, the European Commission launched its own investigation into Meta’s WhatsApp policy.
The Commission expressed concern that the changes could:
- Restrict third-party AI providers in the European Economic Area (EEA)
- Create barriers to fair competition
- Violate EU antitrust regulations
If the EU investigation confirms these concerns, Meta could face significant penalties or be forced to revise its policy across all EU member states.
Why WhatsApp Access Matters So Much
With over two billion users worldwide, WhatsApp is more than just a messaging app—it is a critical digital infrastructure.
For AI companies, access to WhatsApp means:
- Direct reach to billions of users
- High engagement through conversational interfaces
- Strong adoption in emerging markets
Blocking access to such a platform can dramatically reduce an AI service’s visibility and growth potential, which is why regulators are taking the issue seriously.
Temporary Relief for AI Companies and Users
For now, Italy’s interim order provides temporary relief to companies and users relying on third-party AI chatbots via WhatsApp.
However:
- The ruling is not final
- Meta plans to appeal the decision
- Investigations are still ongoing
This creates uncertainty for businesses and developers who depend on WhatsApp as part of their AI distribution strategy.
A Defining Moment for AI Platform Regulation
The case could become a landmark decision in determining how AI services are allowed to operate on dominant digital platforms.
Key questions regulators are trying to answer include:
- Should messaging platforms act as neutral gateways?
- Can platform owners restrict access to protect infrastructure?
- Where is the line between innovation and market dominance?
The outcome may influence future rules governing AI, big tech platforms, and digital ecosystems worldwide.
Meta’s Infrastructure Argument
Meta has also argued that allowing unrestricted chatbot usage places a technical burden on WhatsApp’s systems.
According to the company:
- The Business API was not built for high-volume AI conversations
- AI chatbots increase system load and operational complexity
- Infrastructure limitations justify tighter access control
While this argument addresses technical concerns, regulators remain focused on the competitive implications.
What Happens Next?
Several scenarios could unfold:
- Meta may be forced to revise or roll back its policy
- Regulators could impose fines or behavioral remedies
- New EU-wide rules for AI access on platforms may emerge
The case also signals that governments are becoming more proactive as AI adoption accelerates and platform power grows.
Final Thoughts: A Glimpse Into the Future of AI Competition
Italy’s order to halt Meta’s ban on rival AI chatbots is more than a regional regulatory action—it’s a glimpse into the future of how AI services, digital platforms, and competition laws will intersect.
As AI becomes more embedded in everyday digital life, regulators are likely to scrutinize how major platforms manage access and competition. With WhatsApp serving as a global communication hub, decisions made today could shape the AI ecosystem for years to come.
Whether Meta will be required to maintain open access or allowed to tightly control its ecosystem remains uncertain. What is clear, however, is that the battle over AI distribution and platform power has only just begun.