The interim order, issued on Wednesday by the Italian antitrust agency (AGCM), targets clauses that regulators say risk locking competitors out of WhatsApp. 

This is meant to prevent harm while the investigation runs its course, not to prejudge the outcome. Still, it lands heavily on Meta at a time when Europe is stepping up its monitoring of Big Tech companies, keeping a close eye on their policies and market influence.

AGCM first opened the case in July, focusing on how Meta integrated its own AI assistant into WhatsApp. In November, investigators widened the scope to include updated terms tied to WhatsApp’s business platform. 

By December 24, the watchdog concluded that immediate action was needed. Its concern is that Meta’s behaviour could limit output, choke access to the market, and slow technical progress in AI chatbot services, with knock-on effects for users.

“These contractual conditions completely exclude Meta AI’s competitors in the AI chatbot services market from the WhatsApp platform,” the regulator said. 

Given WhatsApp’s scale, that is important. With more than two billion users worldwide, exclusion from the platform can decide which tools survive and which never get traction.

A Meta spokesperson described the decision as “fundamentally flawed,” adding that the rise of AI chatbots “put a strain on our systems that they were not designed to support”. The company’s line is that opening WhatsApp more widely to third-party AI would risk stability and performance.

This is not just an Italian fight. The European Commission launched its own parallel investigation earlier this month, examining whether Meta’s policies breach EU competition rules across the bloc. 

If regulators ultimately find wrongdoing, penalties could reach up to 10% of Meta’s global annual turnover, a figure that runs into tens of billions.

The case fits the European pattern. Brussels and national authorities have taken tough action against Apple over App Store rules, Google over advertising technology, and Amazon over marketplace practices. 

The approach contrasts with the United States, where enforcement has been looser, drawing complaints from the administration of President Donald Trump that Europe is singling out American firms.

Italy’s watchdog says it is working closely with the European Commission to address Meta’s conduct “in the most effective manner”. 

Coming under the country’s new digital markets regime aimed at curbing monopoly and ensuring fairer competition, the decision follows months of investigation and consultation involving more than 80 stakeholders, including direct engagement with Google. 

According to the CMA, Google’s market position in the UK is “substantial and entrenched,” with the company commanding more than 90% of all search queries conducted in the country.

Will Hayter, executive director for Digital Markets at the CMA, said: “By promoting competition in digital markets like search and search advertising we can unlock opportunities for businesses big and small to support innovation and growth, driving investment across the UK economy. We have found that Google maintains a strategic position in the search and search advertising sector – with more than 90% of searches in the UK taking place on its platform.”

The designation does not amount to a finding of wrongdoing, nor does it impose immediate obligations. However, it grants the CMA the legal authority to enforce targeted decisions when necessary, including measures to enhance transparency and open access in the digital search market.

Under the new framework, which came into effect on January 1, 2025, the CMA has powers to issue binding conduct requirements and penalties for non-compliance. These measures are designed to ensure that technology firms operating in the UK do not exploit their market monopoly to the detriment of competitors and consumers.

In June, the regulator had outlined potential steps such as ensuring fairer search result rankings and offering users greater access to alternative search engines. It also clarified that Google’s AI-based features, including AI Mode and AI Overviews, fall within the scope of this designation, though its Gemini AI assistant is excluded for now, with its status to be reviewed as the market evolves.

Responding to the CMA’s decision, Oliver Bethell, Google’s senior director for Competition, spoke on the potential impact on innovation:

“Many of the ideas for interventions that have been raised in this process would inhibit UK innovation and growth, potentially slowing product launches at a time of profound AI-based innovation.”

The CMA, however, insists its approach will remain “targeted and proportionate,” aiming to drive innovation while ensuring fair play in digital markets. The regulator is expected to consult on specific interventions later this year.

While local competitors soared, Apple’s numbers dropped 9% compared to the same period last year — down to 9.8 million units.

This is the seventh consecutive quarter Apple has seen its shipment volume shrink in China. For a company that once shaped global tech culture, that’s a worrying trend.

At the heart of the issue? Pricing. Apple is sticking to its high-end strategy, but that playbook isn’t working anymore — at least not in China.

A new wave of government subsidies, rolled out in January, is giving Chinese consumers a 15% rebate on devices priced below 6,000 yuan (about $820). Most iPhones don’t qualify. But brands like Xiaomi do, and they’re cashing in.

Xiaomi shipped 13.3 million phones — a 40% jump from the same time last year. That puts it comfortably ahead of Apple in market share, as more Chinese buyers choose value over brand prestige.

“The subsidy scheme is clearly designed to boost domestic consumption, but it’s also giving Chinese brands a strong edge,” said IDC analyst Will Wong. “Apple’s premium pricing structure has prevented the U.S. company from capitalising on new government subsidies.”

Overall, China’s smartphone market grew by 3.3% in Q1. So while the pie got bigger, Apple’s slice got smaller. Its market share now sits at 13.7%, down from 17.4% in the previous quarter — a sharp drop in such a competitive space.

Now, to be fair, Apple isn’t doing badly in shipments everywhere. Globally, it shipped 57.9 million phones in Q1 — its best first-quarter performance ever, with a 10% increase year-on-year.

But China isn’t just another market. It’s the world’s largest consumer electronics battlefield, and losing ground here sends a strong signal.

Chinese consumers are changing. They’re more price-sensitive, more nationalistic, and less dazzled by the Apple logo. And with brands like Xiaomi, Oppo, and Vivo offering sleek design and solid performance at lower prices — backed now by government support — Apple’s old charm isn’t quite cutting it.

The company has a decision to make. Stick to its high-margin strategy and risk further erosion in one of its most important markets? Or rethink its approach to pricing and product positioning in China?

Anyways, this is beyond being one bad quarter. It’s about whether Apple can still compete in a market that’s no longer waiting to be impressed.

The new regulation is boosting competition and providing consumers with more choices, diverging from the traditional monopoly held by the Apple  App Store.

Under the DMA, third-party app stores are now able to operate alongside Apple’s, though they must adhere to certain baseline standards set by Apple to ensure platform genuity, such as being free from malware. 

However, these third-party platforms have the autonomy to establish their own policies for app approval, customer support, and refunds — areas that were previously under Apple’s strict control.

For developers, entering this new market involves accepting Apple’s alternative business terms tailored for DMA-compliant apps in the EU.

This includes a newly introduced Core Technology Fee of €0.50 for each app’s initial installation, even before reaching the threshold of one million installs, a standard that applies to all apps distributed under Apple’s terms in the EU.

Despite the complexity of these new regulations, several developers have seized the opportunity to launch their own alternative app stores. These platforms offer a range of apps, many of which were previously unavailable or restricted on the Apple App Store.

One of the leading alternatives is AltStore PAL, co-created by Riley Testut, who is also known for the Nintendo emulator app Delta. AltStore PAL allows independent developers to distribute apps, bypassing the need for Apple’s review process. Notably, this store is unique in that it enables developers to self-host their apps, giving them full control over distribution.

Setapp Mobile, developed by MacPaw, is another noteworthy alternative. This platform was built as a response to the DMA and offers a subscription-based model where users can access a curated selection of apps. The service is currently available only to users in the EU and excludes big-name apps like Facebook and Netflix.

Epic Games has also entered the fray with its own app store, offering popular titles like Fortnite, Rocket League Sideswipe, and Fall Guys. This comes after Epic’s prolonged legal issues with Apple over App Store policies, further pointing to the importance of the DMA in reshaping the app sector.

Other emerging alternatives include Aptoide, a Lisbon-based open-source app store known for its Android offerings, and Mobivention marketplace, which was built for B2B clients by providing a platform for internal corporate apps.