The Italian Competition Authority has launched an investigation into AI music creation platform Suno over concerns its terms of service are unfair to users.
The watchdog says Suno's contract may let the company change prices, features, or the service itself whenever it wants, with no explanation required.
It also appears to let Suno suspend or delete a user's account at any time, for any reason, without warning.
The regulator also takes issue with Suno's liability clauses, which it says limit the company's responsibility in broad, generic terms including in cases of personal injury.
On copyright, the authority alleges the licence Suno requires users to grant as a condition of using the platform is vaguely defined and sweeping in scope. It also says it appears to force users to waive their moral rights – the right to be credited as a work's creator and to object to it being altered or misused – which Italian law does not allow.
Over the next few weeks, the authority will launch a public consultation on the terms under investigation
Italian Competition Authority
In addition, the regulator brings Suno's approach to resolving disputes into question, as users appear to be forced into individual arbitration in the US rather than being allowed to sue, can't join a class action with other affected users, and have to fight any claim specifically in Suno's home state of Massachusetts.
"Over the next few weeks, the authority will launch a public consultation on the terms under investigation in a dedicated section of its website," it said. "The consultation is open to trade associations representing traders at national level and to chambers of commerce, or their associations, affected by the contractual terms under investigation due to their specific experience in the sector concerned."
Suno has been approached for comment.
BMG recently became the latest significant player to strike a deal with Suno following Warner Music Group's licensing agreement with the company last November.
Suno still faces legal action in the US from Universal Music Group and Sony Music Entertainment. The majors took further legal action against the AI firm last month, alleging copyright infringement. Warner settled its litigation last year.
In July, Suno was also hit with a copyright infringement ruling in Germany following legal action by GEMA.
