Suno was not immediately available for comment.
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.