Regulatory Action Targets AI Platform Over Child Safety and Data Protection
Italy’s data protection regulator, Garante, has imposed a fine of €5 million ($5.64 million) on the developer of the [Replika AI chatbot](https://aiapps.com/items/replika) for breaching user privacy laws and failing to adequately protect minors. The San Francisco-based startup behind Replika, Luka Inc., faced the penalty following an investigation into its data handling practices and user safety measures[1].
Suspension and Findings
- The Garante originally suspended [Replika](https://aiapps.com/items/replika) in Italy in February 2023, citing “specific risks to children.”
- Investigators found Replika lacked a valid legal basis for processing user data and did not implement an effective age-verification system, rendering it accessible to minors despite its adult-oriented features[1].
- The service allows users to create personalized avatars for conversations, marketed as “virtual friends” intended to support emotional wellbeing[1].
Ongoing Scrutiny of AI Compliance in Europe
The regulator’s probe determined that [Replika](https://aiapps.com/items/replika) processed personal data unlawfully and failed to meet transparency requirements under the European Union’s General Data Protection Regulation (GDPR)[2]. Authorities emphasized that children cannot enter into valid contracts under Italian law, undermining Luka Inc.’s justification for data processing[2].
Garante is among the most proactive data regulators in the EU when it comes to policing AI platforms and their compliance with privacy rules. In the past year, it fined [ChatGPT](https://aiapps.com/items/chatgpt) creator OpenAI €15 million following a brief ban of the widely-used chatbot over similar concerns of non-compliance with privacy laws[1].
Further Investigation Into Generative AI Training
The Italian watchdog has also announced a separate investigation to determine whether [Replika's](https://aiapps.com/items/replika) generative AI system adheres to EU privacy standards, focusing in particular on data used to train its language model[1]. Replika has not yet responded publicly to the latest enforcement action.
Context: Growing Pressure on AI Developers
This latest fine reflects intensifying regulatory pressure on artificial intelligence companies to protect the privacy and safety of users—especially children—and to ensure transparent, accountable data processing practices across their platforms[1][2].
($1 = 0.8868 euros)
