Italy opens investigation into AI music company Suno over its terms

Italy’s competition authority, the Autorità Garante della Concorrenza e del Mercato (AGCM), has initiated a formal investigation into the American AI music company Suno. This inquiry centers on concerns that the company’s terms of service may violate Italian consumer protection laws by disproportionately favoring the company over its users.

Suno offers a platform that enables users to generate music from text prompts using artificial intelligence. However, the AGCM has flagged several clauses within Suno’s contractual agreements that could be deemed unfair under Article 33 of Italy’s Consumer Code. This legislation aims to prevent contract terms that create an imbalance detrimental to consumers' rights.

Key issues raised by the regulator include Suno’s unilateral ability to modify the contract, adjust subscription fees, and alter the service without prior notification or justification. Additionally, the company’s rights to suspend or terminate user accounts and delete stored content at any time without warning have drawn scrutiny. Such provisions raise concerns about consumer security and transparency.

The AGCM also highlighted problematic aspects related to user consent during registration. Users reportedly must accept additional terms that are not immediately visible, potentially limiting informed agreement. The terms further appear to broadly limit Suno’s liability, which could undermine consumer protections.

A particularly sensitive topic in the probe is the handling of copyright and intellectual property rights. Suno’s terms require users to grant the company extensive licenses over their content generated through the platform, coupled with a waiver of moral rights. In the context of Italian copyright law, moral rights protect creators’ ability to control attribution and the treatment of their works, making this waiver highly contentious.

Dispute resolution mechanisms specified in Suno’s terms have also attracted regulatory attention. The contract mandates that consumer claims be settled by individual arbitration in the United States, specifically under Massachusetts jurisdiction, where Suno is based. This setup excludes class action suits and imposes strict time limits, potentially limiting consumer access to collective redress and judicial recourse.

In response to these findings, the AGCM plans to conduct a public consultation inviting input from consumers, trade associations, chambers of commerce, and recognized consumer groups. This participatory process, hosted on the authority’s website, aims to gather diverse perspectives before any final decisions are made.

This investigation into Suno follows a broader pattern of regulatory scrutiny in Italy targeting AI-driven services. Earlier this year, the AGCM concluded probes into other AI companies, including DeepSeek, Mistral, and Nova AI, focusing on transparency about chatbot-generated misinformation. These actions reflect growing governmental efforts to ensure that emerging AI technologies operate within established consumer protection frameworks.

Details remain limited regarding the timeline for the Suno investigation and potential outcomes. However, the case underscores the challenges regulators face in adapting traditional consumer laws to the fast-evolving landscape of AI-powered creative tools. As AI continues to reshape music production, balancing innovation with user rights remains a critical priority for authorities worldwide.