Big Tech Faces EU Scrutiny Over AI Data Practices
Over the past few months, major technology companies like Google, Meta, X, and LinkedIn have paused or postponed their AI projects within the EU, attributing these delays to the European Union’s data protection regulations. The Irish Data Protection Commission (DPC) has particularly stepped up its enforcement of the General Data Protection Regulation (GDPR), marking a significant shift from its previous approach that faced criticism for being slow to act against privacy violations.
As tech companies face heightened scrutiny over their data usage for AI training, various stakeholders are also voicing concerns about fair compensation for content creators. The New York Times has filed a lawsuit against OpenAI and Microsoft, while Universal Music Group temporarily removed its music from TikTok due to AI-related issues. The DPC is focused on ensuring that tech firms have valid legal grounds for processing personal data under the GDPR, which outlines six permissible bases for data processing.
The leadership change at the DPC has led to a more aggressive stance against Big Tech, with recent interventions resulting in delayed AI rollouts. Notably, the Irish regulator has requested Ireland’s High Court to impose restrictions on X’s processing of personal data, reflecting a more assertive regulatory approach. Additionally, Apple has postponed the launch of its new AI-powered iPhone in Europe while it assesses compliance with the EU’s Digital Markets Act.
Inconsistent interpretations of GDPR rules have created legal uncertainties for AI firms, hindering innovation within the EU. The European Data Protection Board is currently working on guidelines for data usage in AI models, which could provide clarity for tech companies. However, some industry leaders express concern that the Irish DPC may become overly influenced by other EU authorities, potentially leading to fragmented regulatory practices across the region.
Read full article: Europe’s privacy patrol is spoiling Big Tech’s AI party
