Recently, the European Union became the centre stage of a data privacy controversy related to the social media platform X.
On August 8, an Irish court declared that X had agreed to suspend the use of all data belonging to European Union citizens, which had been gathered via the platform for the purpose of training the company’s AI systems. As reported by The Economic Times, this initiative was prompted by complaints from the Data Protection Commission (DPC) of Ireland, the leading EU regulator for many large US tech companies that have their main offices in Ireland under EU law.
Taking action, the DPC’s intervention comes amid intensified scrutiny of AI development practices across the EU by tech giants. Recently, the regulatory body sought an order to restrain or suspend X’s data processing activities on users for the development, training, and refinement of an AI system. This situation clearly depicts the growing conflict or tension experienced by nearly all EU states between AI advances and ongoing data protection concerns.
It seems that the order was issued too late by regulators and the court. In the response filed for the lawsuit, X, owned by Elon Musk, reported that Grok—an AI chatbot—allowed its users to skip their public posts.
As Judge Leonie Reynolds noted, X began processing European users’ data for AI training on May 7, but the opt-out option was not introduced until July 16. Furthermore, it was not immediately made available to all users. Therefore, there was a period when the data was used without the users’ consent.
X’s legal representation has assured the court that data obtained from EU users between May 7 and August 1 will not be used while the DPC’s order is under consideration. It is expected that X will file opposition papers arguing against the suspension order by September 4. This will set in motion what could be a court battle with effects reverberating throughout the EU.
Either way, X has not remained silent on the matter. In its statement, the company’s Global Government Affairs account on X noted that the DPC’s order was “unwarranted, overbroad, and singles out X without any justification.” Furthermore, the company expressed concerns that the order would undermine efforts to keep the platform safe and restrict its use of technologies in the EU. This highlights the complex balance between regulatory compliance and operational viability that tech companies must navigate in the current digital landscape.
The platform emphasised its proactive approach in working with regulators, including the DPC, regarding Grok since late 2023. X claims to have been fully transparent about the use of public data for AI models, including providing necessary legal assessments and engaging in lengthy discussions with regulators.
This regulatory action against X is not an isolated incident. Other tech giants have faced similar scrutiny in recent months. Meta Platforms recently decided to postpone the launch of its Meta AI models in Europe following advice from the Irish DPC. Similarly, Google agreed to delay and modify its Gemini AI chatbot earlier this year after consultations with the Irish regulator.
These developments collectively signal a shift in the regulatory landscape of AI and data usage in the EU. Regulators are taking a more active role in overseeing how tech companies utilise user data for AI training and development, reflecting growing concerns about data privacy and the ethical implications of AI advancement.
As the legal proceedings unfold, the outcome of this case could set important precedents for how AI development is regulated in the EU, potentially influencing global standards for data protection in the AI era. The tech industry and privacy advocates alike will be watching closely as this situation develops, recognising its potential to shape the future of AI innovation and data privacy regulations.
(Photo by Alexander Shatov)
See also: Balancing innovation and trust: Experts assess the EU’s AI Act
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