EU regulators are expanding enforcement of AI services under GDPR, consumer protection, and digital markets rules, signaling tighter EU oversight of AI in the region.

Character.AI’s compliance approach and safeguards are under scrutiny as the EU tightens oversight of AI services accessible to minors.

The case underscores Europe’s broader focus on youth safety and data privacy, with authorities highlighting a proactive stance in this arena.

Reuters notes that other AI developers, including the owner of Replika, have been fined for insufficient legal bases for data processing and weak age verification.

Italy’s data protection authority, Garante, fined Character Technologies, the U.S.-based developer of Character.AI, €158,000 for inadequate safeguards to prevent minors from using the service and weak age verification.

Garante cited data protection breaches and insufficient child-safety measures in the Character Technologies case, with a fine of about $180,500.

Concerns were raised about the effectiveness of age-verification procedures and the need for stronger protections for minors beyond existing measures.

The violations include GDPR compliance failures, such as insufficient information to users about data processing, plus delays in completing a Data Protection Impact Assessment and appointing an EU representative.

Garante found the platform lacked robust safeguards to prevent minors from registering or exposure to potentially adult or unsuitable content.

Regulators flagged that Character.AI did not adequately protect younger users from potentially unsuitable content, highlighting child safety and privacy concerns in AI platforms.

Contextual background shows ongoing EU enforcement against AI providers, including past actions like the temporary OpenAI ChatGPT ban in Italy over GDPR issues.

In 2023, Italy briefly banned OpenAI’s ChatGPT over age verification and data collection concerns, illustrating a pattern of regional enforcement.