Italy Fines OpenAI over ChatGPT Privacy Rules Breach

The Italian watchdog also ordered OpenAI to launch a six-month campaign on Italian media to raise public awareness about how ChatGPT works - Reuters
The Italian watchdog also ordered OpenAI to launch a six-month campaign on Italian media to raise public awareness about how ChatGPT works - Reuters
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Italy Fines OpenAI over ChatGPT Privacy Rules Breach

The Italian watchdog also ordered OpenAI to launch a six-month campaign on Italian media to raise public awareness about how ChatGPT works - Reuters
The Italian watchdog also ordered OpenAI to launch a six-month campaign on Italian media to raise public awareness about how ChatGPT works - Reuters

Italy's data protection agency said on Friday it fined ChatGPT maker OpenAI 15 million euros ($15.58 million) after closing an investigation into use of personal data by the generative artificial intelligence application.

The fine comes after the authority found OpenAI processed users' personal data to "train ChatGPT without having an adequate legal basis and violated the principle of transparency and the related information obligations towards users".

OpenAI said the decision was "disproportionate" and that the company will file an appeal against it.

The investigation, which started in 2023, also concluded that the US-based company did not have an adequate age verification system in place to prevent children under the age of 13 from being exposed to inappropriate AI-generated content, the authority said, Reuters reported.

The Italian watchdog also ordered OpenAI to launch a six-month campaign on Italian media to raise public awareness about how ChatGPT works, particularly as regards to data collection of users and non-users to train algorithms.

Italy's authority, known as Garante, is one of the European Union's most proactive regulators in assessing AI platform compliance with the bloc's data privacy regime.

Last year it briefly banned the use of ChatGPT in Italy over alleged breaches of EU privacy rules.

The service was reactivated after Microsoft-backed OpenAI addressed issues concerning, among other things, the right of users to refuse consent for the use of personal data to train the algorithms.

"They've since recognised our industry-leading approach to protecting privacy in AI, yet this fine is nearly twenty times the revenue we made in Italy during the relevant period," OpenAI said, adding the Garante's approach "undermines Italy's AI ambitions".

The regulator said the size of its 15-million-euro fine was calculated taking into account OpenAI's "cooperative stance", suggesting the fine could have been even bigger.

Under the EU's General Data Protection Regulation (GDPR) introduced in 2018, any company found to have broken rules faces fines of up to 20 million euros or 4% of its global turnover.



Skype's Final Call Set for May as Microsoft Prioritizes Teams

FILE PHOTO: A 3D printed Skype logo is placed in front of a keyboard in this illustration taken April 12, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A 3D printed Skype logo is placed in front of a keyboard in this illustration taken April 12, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
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Skype's Final Call Set for May as Microsoft Prioritizes Teams

FILE PHOTO: A 3D printed Skype logo is placed in front of a keyboard in this illustration taken April 12, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A 3D printed Skype logo is placed in front of a keyboard in this illustration taken April 12, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

Skype will ring for the last time on May 5 as owner Microsoft retires the two-decade-old internet calling service that redefined how people connect across borders.
Shutting down Skype will help Microsoft focus on its homegrown Teams service by simplifying its communication offerings, the software giant said on Friday.
Founded in 2003, Skype's cheap audio and video calls quickly disrupted the landline industry in the early 2000s and made the company a household name boasting hundreds of millions of users at its peak. But the platform has struggled to keep up with easier-to-use and more reliable rivals such as Zoom and Salesforce's Slack in recent years.
The decline was partly because Skype's underlying technology was not suited for the smartphone era.
When the pandemic and work-from-home fueled the need for online business calls, Microsoft batted for Teams by aggressively integrating it with other Office apps to tap corporate users — once a major base for Skype.
To ease the transition from the platform, its users will be able to log into Teams for free on any supported device using their existing credentials, with chats and contacts migrating automatically.
With that, Skype will become the latest in a series of high-flying bets that Microsoft has mishandled, such as the Internet Explorer web browser and its Windows Phone. Other big tech firms have also struggled with online communication tools, with Google making several attempts through apps including Hangouts and Duo, Reuters reported.
It was not clear how many users or employees would be impacted by the move. Microsoft did not immediately respond to a request for the figure.
When Microsoft bought Skype in 2011 for $8.5 billion after outbidding Google and Facebook — its largest deal at the time — the service had around 150 million monthly users; by 2020, that number had fallen to roughly 23 million, despite a brief resurgence during the pandemic.
Microsoft said on Friday "Skype has been an integral part of shaping modern communications".
"We are honored to have been part of the journey."