The Italian competition authority, AGCM, has opened an investigation into Suno, the US company whose artificial intelligence (AI) service turns texts into songs. The authority said that some parts of Suno’s terms of use may be unfair to consumers under Italian law. The case is based on Article 33 of Italy’s Consumer Code, which considers a contract term unfair when the balance of rights tilts excessively in favor of the company and against its customers.
See also: Germany: AI music creator Suno infringed copyright
The AGCM expressed several concerns, noting that Suno’s terms appear to allow the company to unilaterally change the contract, service and subscription prices without providing a reason. This can create significant problems for users, who may be faced with unforeseen changes in the costs or services they receive. Furthermore, the terms appear to allow the company to suspend or close accounts, along with any songs stored on them, at any time and without notice.
This could have serious consequences for users who rely on the platform to store and manage their music content. In addition, users who sign up are reportedly being asked to agree to additional terms that they cannot see at the time, and the terms appear to limit Suno’s liability in general terms, according to the authority. This could leave users without adequate protection in the event of problems or disputes with the company.
Copyright is a particular concern. To use the platform, users must grant Suno a license to use their content, which the AGCM says is too broad. This means Suno can use users’ content in ways they have not anticipated or approved. In addition, the terms require users to waive their moral rights, which allow creators to control how their works are credited and treated.
Moral rights are protected by Italian copyright law, and waiving them can have significant consequences for creators.
See also: Suno: Nightmare scenario for music copyright
The authority also questioned the way disputes are handled, as Suno’s terms appear to require consumer claims to be submitted to binding individual arbitration in the United States, with strict time limits and no provision for class actions. They also say that courts in Massachusetts, where Suno is based, have exclusive jurisdiction. This could make it difficult for Italian users to assert their rights, as they would have to face legal proceedings in a foreign country with a different legal system.
In the coming weeks, the AGCM will hold a public consultation on the contested terms via its website, allowing national trade associations, chambers of commerce and recognised consumer groups to participate. This process can provide valuable information and suggestions for improving Suno's terms of use, ensuring that they are fair and transparent for all users.
This case represents the latest example of the AGCM taking action against an AI company to protect consumers. Earlier this year, the agency concluded its investigations into DeepSeek, Mistral and Nova AI after the three companies agreed to warn their users about “hallucinations,” which occur when chatbots produce false information. These actions underscore the AGCM’s commitment to ensuring that AI technologies are used responsibly and that consumers are protected from unfair practices.
See also: Suno snatched millions of songs from YouTube, Genius and Deezer
The Suno case is particularly important as it highlights the challenges facing regulators in the age of artificial intelligence. As AI technologies continue to evolve and become integrated into various aspects of daily life, it is critical to ensure that users are fully aware of their rights and obligations and that companies operate in a transparent and fair manner.
