DUBLIN: In a significant move that underscores the ongoing scrutiny of tech giants in Europe, Ireland's Data Protection Commission (DPC) announced on Friday that it has initiated an investigation into the social media platform X, previously known as Twitter. The inquiry focuses on whether the company is improperly using personal data sourced from European Union (EU) users to train its artificial intelligence (AI) system known as Grok.

The DPC serves as the lead data regulator for X within the EU, a role it holds due to the company's operational base in Ireland. This position endows the DPC with considerable authority, including the ability to impose hefty fines that can reach up to 4% of a companys global revenue, as stipulated under the stringent General Data Protection Regulation (GDPR). This legal framework is designed to protect the privacy and personal data of EU citizens.

According to the statement issued by the DPC, the investigation will specifically examine the processing of personal data derived from publicly accessible posts made by EU/EEA users on the X platform. This data is allegedly being used for the purpose of training generative AI models, raising significant concerns about user consent and data privacy.

The backdrop of this investigation includes vocal criticisms from notable figures such as former U.S. President Donald Trump, who, along with members of his administration, has openly challenged EU regulations affecting U.S. firms. They have characterized the fines imposed on American tech companies by European authorities as a form of excessive taxation that stifles innovation.

Elon Musk, the owner of X and the world's richest individual, has echoed similar sentiments, expressing his discontent with EU regulations, particularly those emanating from Brussels that govern online content. His criticisms arise from the belief that such regulations place undue burdens on companies operating in the digital space.

This latest decision by the DPC follows a prior court case in which the regulator sought to impose restrictions on Xs data processing practices related to AI development. In a notable turn, X had previously consented to stop utilizing personal data from EU users without providing them the chance to withdraw their consent, leading the Irish regulator to conclude its court proceedings shortly thereafter. The company agreed to maintain these limitations on a permanent basis, marking a significant shift in its operational policies regarding user data.

Since gaining enforcement powers in 2018, the Irish privacy watchdog has administered fines to several high-profile companies, including Microsofts LinkedIn, TikTok, and Meta, amounting to nearly 3 billion. Notably, X has not encountered penalties since it was fined 450,000 (approximately $511,000) in 2020, which was the first financial sanction levied by the DPC under the new data privacy regulation framework.

The ongoing investigation into X underscores the broader regulatory challenges faced by tech companies operating in Europe, illustrating the ever-increasing emphasis on data privacy and the protection of user rights.