Italy antitrust authority opens investigation into Suno AI music startup over terms of service

Italy's antitrust authority, the AGCM, has launched an investigation into U.S. generative AI music startup Suno over potentially unfair terms of service. Regulators allege that Suno's contract terms violate Article 33 of Italy's Consumer Code by allowing the company to unilaterally change subscription prices, alter services, and terminate user accounts without notice. The AGCM is also scrutinizing overly broad content licensing, waivers of moral rights that conflict with Italian copyright law, and clauses forcing European consumers into binding arbitration in Massachusetts.

Investigation into potential Consumer Code violations

• ▪Italy's competition authority, the AGCM, opened an investigation on October 6, 2026, into the U.S.-based generative AI music startup Suno over potentially unfair terms of service.
• ▪The AGCM stated that Suno's terms of service may violate Article 33 of Italy's Consumer Code by creating a significant imbalance between consumers' rights and obligations.

Unilateral contract modifications and account suspension

• ▪The AGCM alleged that Suno's terms of service allow the company to unilaterally modify its contract, services, and subscription prices at any time without providing a reason.
• ▪The AGCM raised concerns that Suno's terms permit the company to suspend, discontinue, or terminate user accounts and stored songs at any time without prior notice.

Dispute resolution and jurisdiction clauses

• ▪Suno's terms of service establish that the courts of Massachusetts, where the company is based, have exclusive jurisdiction over legal claims.
• ▪The AGCM highlighted that Suno's terms require consumers to resolve disputes through binding individual arbitration in the United States, with strict deadlines and a waiver of class actions.

Copyright concerns

• ▪Suno recently faced legal pressures following copyright rulings against the startup overseas.
• ▪The AGCM stated that the license users must grant to Suno to use their content is defined too broadly and is insufficiently detailed.
• ▪The AGCM raised concerns that Suno's terms require users to waive moral rights, which allow authors to control how work is credited and treated, conflicting with Articles 20 and following of Italian Law 633/1941.

Debatable claims

• ▪Forcing European AI users into US arbitration is an unfair legal barrier
• ▪AI music platforms should not require users to waive their moral rights
• ▪National antitrust watchdogs are the appropriate authorities to police global AI terms of service
• ▪Suno's terms of service unfairly exploit European consumers