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Italy’s competition regulator has taken a decisive step against Meta’s latest restrictions on AI chatbots operating via WhatsApp. On December 24, 2025, the Italian Competition Authority (AGCM) ordered Meta to suspend its WhatsApp AI chatbot ban policy, finding that the policy could harm competition and limit innovation while investigations continue.
Italy’s AGCM Orders Suspension of WhatsApp AI Chatbot Ban Policy
Meta updated its WhatsApp Business API terms in October 2025 to prohibit general-purpose AI chatbots from operating on the platform. The AGCM concluded that this change could amount to an abuse of Meta’s dominant market position, as it favors Meta’s own AI offerings and blocks rivals from reaching WhatsApp’s massive user base.
The regulator said consumers could face reduced choice and innovation because of the restriction, potentially causing serious harm to competition. In response, AGCM broadened its investigation in November 2025 and ultimately issued the suspension order on December 24 pending further review. The move prevents the ban from taking effect in January 2026, when Meta planned to enforce the restrictions.
WhatsApp’s reach — with over 3 billion users globally — makes the API a critical channel for developers and AI services. Businesses rely on the API for customer messaging, and several third-party AI providers have been using it to distribute chatbot services.
Meta executives have argued that the API was designed primarily for business support messaging and not for the distribution of high-volume AI queries, which can strain infrastructure. WhatsApp’s business messaging remains a significant revenue driver, with charges applied per message type, such as marketing or utility.
Italy’s action makes it the first European regulator to counter this specific policy change. AGCM stated its order was necessary to prevent irreparable harm to rivals and preserve market contestability, amid broader efforts to ensure fair access for innovative AI tools.
Meta Defends WhatsApp AI Chatbot Ban Policy Amid Backlash
Meta dismissed Italy’s suspension order as flawed and announced plans to appeal. The company reiterated that the WhatsApp Business API is designed for business support, not general AI distribution, and suggested bot developers use app stores or web access instead.
Meta emphasized that the policy does not affect AI tools used for business purposes, such as customer support bots, and that only general-purpose AI chatbots like ChatGPT-style assistants were targeted under the new terms.
Meta has also integrated its own Meta AI directly into WhatsApp chats, giving users built-in access to AI capabilities and raising concerns about self-preference. Competitors such as OpenAI and Perplexity had launched their bots on WhatsApp earlier in 2025, with many processing text, media, and voice and generating images.
Under previous API terms, Meta did not bill chatbot usage; business API revenue was tied to template-based messaging. Meta says this model was not designed to support high-volume AI traffic, motivating its policy change.
Critics argue Meta’s approach amounts to self-preferencing and stifles innovation. They say a platform owner picking winners among AI services undermines fair competition, a concern regulators are increasingly scrutinizing.
Meta’s appeal process could extend into 2026 as Europe’s tech policy environment tightens and regulators test the limits of platform governance.
EU Probe Adds Pressure on WhatsApp AI Chatbot Ban Policy
In December 2025, the European Commission launched its own probe into Meta’s WhatsApp policy for potential violations of EU antitrust rules. The investigation covers the entire European Economic Area (EEA) and focuses on how the policy affects third-party AI services.
EU officials have expressed concerns that restricting third-party AI bots on WhatsApp may limit services available to consumers and diminish competitive pressure in an already concentrated market. The Commission’s efforts follow Italy’s broadened inquiry and reflect coordinated Big Tech scrutiny among European regulators.
The policy defines AI providers broadly, including large language models and generative AI platforms. Affected startups, such as Poke and Luzia, risk losing a major distribution channel through WhatsApp if restrictions take effect.
Squaredtech notes this fits a broader regulatory trend toward enforcing openness on major digital platforms to ensure consumers benefit from innovation and choice. If found in breach, Meta could face fines or be required to change its terms, as EU antitrust remedies often involve concessions that preserve competitive access.
Analysis: Future of Competition in WhatsApp AI Chatbot Ban Policy
Italy’s suspension of the ban provides temporary relief for AI developers, allowing chatbot services to remain available via the Business API for now. The ultimate outcome of Meta’s appeal and the EU investigation will shape long-term rules for AI access on WhatsApp.
If Meta prevails in its appeal, the original ban could be reinstated. If regulators succeed, WhatsApp may open more broadly to third-party AI players, increasing alternatives for users.
This dispute highlights a larger tension in digital markets: platform owners seeking revenue and infrastructure stability versus regulators and developers pushing for open access and competition. Developers worldwide are watching closely, as rulings in Europe could influence policy in the U.S. and other regions.
Users stand to gain from greater choice if multiple AI bots remain accessible on WhatsApp, potentially driving better quality, features, and integration. At the same time, platforms will need to balance revenue models with openness to innovation.
Businesses may adapt by segmenting AI uses clearly and ensuring compliance to avoid disruptions. The broader AI market continues to expand with chatbots integrating across services, while regulators push to ensure no single firm dominates critical distribution channels.
This case underscores the importance of competition and user needs in shaping fair digital markets. Outcomes over the next year will affect billions of users and set precedents for how AI ecosystems evolve. Squaredtech will continue tracking developments through 2026.
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