Elon Musk’s X Halts AI Data Collection in EU Amid Regulatory Pressure

The social media platform X, owned by billionaire Elon Musk, has agreed to suspend the collection and processing of user data within the European Union (EU) after facing legal action from regional regulators. The decision comes after a court hearing in Ireland on August 7, where the local Data Protection Commission (DPC) announced that X would halt its data processing practices, particularly the use of EU users’ public posts for training its AI system, known as "Grok."

Court Ruling and Data Protection Compliance

The suspension, which covers the data of users within the EU and the European Economic Area (EEA), was a result of an undertaking given by X to the Irish High Court. The DPC, which serves as the primary regulator overseeing X’s activities in the region, welcomed the decision. Des Hogan, chairman of the DPC, emphasized the importance of protecting the rights and freedoms of X’s users under EU law.

"One of our main roles as an independent regulator and rights-based organization is to ensure the best outcome for data subjects, and today’s developments will help us to continue protecting the rights and freedoms of X users across the EU and EEA," Hogan stated. The DPC will continue to engage with data controllers to safeguard citizens’ data protection rights.

Growing Scrutiny and Regulatory Challenges

Reports of X’s misuse of EU user data began to surface in late July after the DPC was alerted to changes in the platform’s default settings that allowed user data to be used for training Grok. These developments have intensified the scrutiny of X’s practices by regulators worldwide, particularly following Musk’s acquisition of the platform in October 2022. Since taking over, Musk has made significant investments in AI integration, among other changes, which have raised concerns among regulatory bodies.

In July, the EU released documents supporting preliminary findings that X had breached the Digital Services Act (DSA) on three counts. The potential consequences for these violations include fines of up to 6% of X’s total worldwide annual turnover.

Musk’s Response to EU Actions

Elon Musk has been vocal in his opposition to the EU’s actions, claiming that the European Commission offered X an "illegal secret deal" that would suppress free speech—a principle Musk asserts he is actively defending. The ongoing legal and regulatory challenges highlight the complex relationship between the social media platform and EU regulators as they navigate the evolving landscape of data protection and AI integration.