OpenAI, the creator of ChatGPT, is facing potential fines following accusations of breaching Europe’s flagship data privacy law.

Italy’s Data Protection Authority, known as the Garante, has informed OpenAI about the alleged data protection breaches, although specific details regarding the nature of these breaches and potential actions against the tech firm have not been disclosed.

The primary concern appears to revolve around OpenAI’s failure to adequately monitor content for young users, which has raised worries that younger individuals may be exposed to inappropriate material generated by the chatbot.

OpenAI’s platform requires users to be at least 13 years old, with those under 18 needing parental or legal guardian permission, as stated on its website.

OpenAI’s practices

Furthermore, the Italian watchdog is examining OpenAI’s practices related to the collection of user data for training its chatbot. The Garante has indicated that available evidence suggests violations of provisions within the EU’s General Data Protection Regulation (GDPR).

This development marks the latest episode in a series of actions taken by Italian authorities concerning OpenAI’s AI tool.

Italy previously imposed a temporary ban on ChatGPT last year, which was the first of its kind in Europe. The ban was subsequently lifted after OpenAI addressed privacy concerns.

Data protection

Under the European Union’s General Data Protection Regulation, companies found in violation of data protection rules can face fines of up to 4% of their global revenue.

It remains uncertain whether OpenAI could face another ban in connection with the Garante’s latest actions.

OpenAI has issued a statement disputing the Italian agency’s claims.

The company asserts that its practices are in alignment with GDPR and other privacy laws and emphasises its commitment to safeguarding user data and privacy.

OpenAI also pledges to actively work on reducing personal data usage in training its systems and states its rejection of requests for private or sensitive information about individuals.

The company further intends to continue cooperating constructively with the Garante.

Regulatory scrutiny

This latest development adds to the challenges facing OpenAI, which has also been subject to increasing legal and regulatory scrutiny in the United States.

Antitrust authorities in both the US and Europe have shown interest in investigating the relationship between Microsoft and OpenAI, raising concerns about potential competition issues.

These concerns intensified after Microsoft played a significant role in reinstating OpenAI CEO Sam Altman, who had briefly been removed from his position by the AI company last year.