OpenAI faces another hurdle in its quest to continue doing business in the European Union, as German authorities have launched an inquiry into the company’s privacy practices and General Data Protection Regulation (GDPR) compliance. 

As reported by Agence France-Presse, regulators in Germany are demanding answers concerning the company’s intentions and ability to comply with the strict data privacy laws enshrined in the EU’s GDPR.

Marit Hansen, commissioner for the northern German state of Schleswig-Holstein, told AFP reporters that regulators in Germany “want to know if a data protection impact assessment has been carried out and if the data protection risks are under control.” The commissioner added that the country was also asking OpenAI for “information on issues that stem from the European General Data Protection Regulation.”

While this news doesn’t come as a surprise — German watchdog groups have recently recommended further scrutiny — it adds to an already complex situation for OpenAI.

The company released its GPT-4 model in mid-March. In the short time since, OpenAI has faced increasing scrutiny from regulators, especially those in Europe. Italy was the first Western nation to issue a ban on the products. At the same time, the company and local regulators are sorting out whether OpenAI can comply with GDPR and Italian privacy laws.

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Author: Tristan Greene

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