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Elon Musk’s X faces legal challenge in Ireland over use of user data for AI training

Key Points:
1. Ireland’s DPC took X to court for using European user data without consent.
2. Musk’s platform could face significant penalties for GDPR violations.
3. X began processing data without properly informing users, allowing only a hidden opt-out in settings.
4. The DPC sought an injunction to stop the use of data for training AI systems such as "Grok."

The social media platform X, owned by Elon Musk, has been taken to court in Ireland by the Irish Data Protection Commission (DPC). The allegation involves the use of European user data to train artificial intelligence models without obtaining explicit consent. The move has raised significant concerns among European regulators.

Last month, X began processing user data for training its AI model called "Grok" without clearly informing users or obtaining their prior consent. This development surprised the DPC, which requested more information from X. Failure to comply with the General Data Protection Regulation (GDPR) could result in penalties of up to 4 percent of the platform’s global annual revenue.

According to RTE reports, the DPC has filed a lawsuit against Twitter International, the Irish division of X, for violations of the Irish Data Protection Act of 2018. The DPC is seeking an injunction ordering X to stop processing users’ personal data for AI training purposes.

The matter is particularly urgent as X plans to launch a new version of Grok this month, a version that is believed to have been trained using personal data of EU and EEA users. The DPC has expressed concerns that unauthorized use of users’ data poses an immediate risk to their rights and freedoms.

X responded by rejecting the DPC’s requests to stop data processing or delay the launch of the new version of Grok. The DPC then decided to refer the matter to the European Data Protection Board (EDPB), an independent body established by the GDPR that has the power to issue enforcement guidelines.

The legal action in Ireland comes at a time of increasing scrutiny of X’s compliance with privacy regulations. Recently, the platform lost a case in the Netherlands over GDPR violations, and the European Commission suspected X of violating the EU’s Digital Services Act (DSA). The DSA provides for penalties of up to 6 percent of annual global turnover for noncompliance.

Musk has faced criticism for his handling of user privacy since acquiring Twitter. The unreported departure of Twitter’s chief data protection officer in November 2022 raised concerns among regulators. However, X has managed to retain its consolidated principal status in Ireland, allowing the DPC to lead the investigation of GDPR-related complaints.

If the Irish court grants the injunction, X may be forced to review its data processing practices and strictly comply with European privacy regulations.