A data privacy controversy involving the social media platform X has placed the European Union in the spotlight.
On August 8, an Irish court ruled that X had agreed to suspend the use of all data from European Union citizens that had been collected via the platform for training the company’s AI systems. According to The Economic Times, this decision was driven by complaints from the Data Protection Commission (DPC) of Ireland, which is the primary EU regulator for many large U.S. tech companies headquartered in Ireland under EU law.
The DPC’s intervention comes amid increased scrutiny of AI development practices across the EU by major tech companies. Recently, the DPC sought an order to halt or suspend X’s data processing activities related to AI system development, training, and refinement. This situation illustrates the growing tension across nearly all EU states between AI advancements and ongoing data protection concerns.
However, it appears that regulators and the court issued the order too late. In response to the lawsuit, X, owned by Elon Musk, reported that Grok—an AI chatbot—allowed users to opt out of having their public posts used.
Judge Leonie Reynolds noted that X began processing European users’ data for AI training on May 7, but the opt-out option was not introduced until July 16, and it wasn’t immediately available to all users. Consequently, there was a period during which data was used without user consent.
X’s legal team 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 review. X is expected to file opposition papers against the suspension order by September 4, potentially sparking a court battle that could have significant repercussions across the EU.
X has not remained silent on the matter. In a statement from the company’s Global Government Affairs account on X, the DPC’s order was described as “unwarranted, overbroad, and unfairly targeting X without any justification.” The company also expressed concerns that the order could hinder efforts to maintain platform safety and limit its use of technologies in the EU, underscoring the complex balance between regulatory compliance and operational viability that tech companies must navigate in today’s digital landscape.
X emphasized its proactive approach in working with regulators, including the DPC, regarding Grok since late 2023. The company claims to have been fully transparent about using public data for AI models, providing necessary legal assessments, and engaging in extensive 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 postponed 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 events signal a shift in the regulatory landscape concerning AI and data usage in the EU. Regulators are taking a more active role in overseeing how tech companies use user data for AI training and development, reflecting growing concerns about data privacy and the ethical implications of AI advancement.
As legal proceedings continue, the outcome of this case could set important precedents for AI development regulation in the EU, potentially influencing global data protection standards in the AI era. Both the tech industry and privacy advocates will be closely monitoring this situation, recognizing its potential to shape the future of AI innovation and data privacy regulations.
