Court of Rome Annuls OpenAI GDPR Fine, Creating AI Enforcement Gap Under One-Stop-Shop Rules
By
Giulio Monga
Summary
The Court of Rome annulled the €15 million GDPR fine that Italy's Garante had imposed on OpenAI for ChatGPT, ruling that the Garante lost competence once OpenAI's Irish establishment was recognized under the GDPR's One-Stop-Shop mechanism. This decision creates a potential enforcement gap during the launch period of AI systems, as the Irish DPC may not have jurisdiction over pre-establishment activities. The article analyzes the legal reasoning behind the ruling, its implications for AI regulation in Europe, and suggests the Court of Justice of the European Union may need to resolve the resulting jurisdictional uncertainty.
Source
bskyCourt of Rome Annuls OpenAI GDPR Fine, Creating AI Enforcement Gap Under One-Stop-Shop Ruleseuropeanlawblog.euKey quotes
· 3 pulledthe only final GDPR enforcement decision ever adopted in Europe in relation to the public launch of generative AI
Had the Court doubted the proportion
the Garante lost competence once OpenAI's Irish establishment was recognised
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