Italy antitrust regulator opens investigation into AI music startup Suno

Italy's antitrust authority has launched a formal investigation into popular U.S.-based AI music generator Suno, targeting provisions within the platform's terms of service.

The Italian regulator (AGCM) raised concerns that several contractual clauses are stacked unfairly against European consumers, highlighting broad user licenses, mandatory waivers of moral rights under local copyright law, and unilateral company rights to alter pricing or terminate accounts without prior notice.

Investigators are also scrutinizing Suno’s dispute resolution clauses, which require users to pursue binding individual arbitration in the United States and submit to the exclusive jurisdiction of courts in Massachusetts.

The probe marks the latest regulatory hurdle for the AI industry in Europe, compounding legal pressures following recent copyright rulings against the startup overseas.

The AGCM announced plans to hold a public consultation with consumer groups and trade associations in the coming weeks.

Suno's terms could create a significant imbalance in the rights and obligations of users, the watchdog said

They give Suno "broad discretion" to unilaterally modify its contract, service and subscription prices without having to provide any justification, it added in a statement

The regulator said the licence granted by users was excessively broad and included a waiver of moral rights that may conflict with Italian copyright law

Suno's terms require users to resolve disputes through mandatory arbitration in the United States, waive class-action rights and accept Massachusetts as the exclusive jurisdiction for legal claims, the authority said

It added it would launch a consultation in the coming weeks in which interested business groups, chambers of commerce and consumer associations could participate.