Italian regulators have instructed Meta to temporarily halt a policy that blocks competing AI chatbots from operating through WhatsApp’s business infrastructure. The move marks a significant escalation in Europe’s scrutiny of how large tech platforms integrate their own AI products while limiting rivals.

The order came from Italy’s competition watchdog, the Autorità Garante della Concorrenza e del Mercato (AGCM), which is currently investigating whether Meta has leveraged its market power unfairly. According to the authority, there is sufficient preliminary evidence to justify suspending Meta’s policy while the broader investigation continues.

At the heart of the dispute is Meta’s decision to change its WhatsApp Business API rules. Under the revised policy, companies are no longer allowed to distribute general-purpose AI chatbots—such as widely used conversational assistants—via WhatsApp. Regulators argue that this move could choke off innovation and reduce consumer choice by preventing third-party AI developers from accessing one of the world’s most popular messaging platforms.

In its statement, the AGCM warned that Meta’s conduct may restrict market access and technical progress in the AI chatbot sector. The authority also emphasized the urgency of its decision, stating that allowing the policy to remain in place during the investigation could cause lasting damage to competition that would be difficult to reverse later.

The policy change, first announced in October and scheduled to take effect in January, would directly affect AI chatbot providers including OpenAI, Perplexity, and others that rely on WhatsApp for distribution. However, the restriction does not apply to businesses using AI internally for customer support. For example, a company operating an automated helpdesk chatbot on WhatsApp would still be permitted under the current rules.

Meta has pushed back strongly against the Italian regulator’s position. The company maintains that WhatsApp’s Business API was never intended to function as a marketplace for AI chatbot services. According to Meta, AI companies already have multiple ways to reach users, such as mobile app stores, standalone websites, and commercial partnerships.

In a statement responding to the decision, Meta described the regulator’s conclusions as deeply misguided. The company argued that the rise of AI chatbots placed technical pressure on systems not built for that purpose and rejected the idea that WhatsApp should be treated like an app distribution platform. Meta has confirmed it plans to appeal the order.

Italy’s action is not happening in isolation. Earlier this month, the European Commission also opened a formal inquiry into the same policy, citing concerns that it could block third-party AI services across the European Economic Area.

As regulators press forward, the case could shape how dominant digital platforms are allowed to roll out proprietary AI tools without sidelining competitors.

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