Right to be forgotten

xAI faces lawsuit over alleged misuse of AI image generation

Legal action has been filed against xAI in a US federal court, with plaintiffs alleging that its AI system Grok was used to generate harmful and explicitly manipulated images of minors.

The lawsuit claims that xAI failed to implement adequate safeguards to prevent the creation of such content, despite similar protections adopted by other AI developers.

According to the filing, the technology enabled the transformation of real images into explicit material without sufficient restrictions.

Plaintiffs seek to establish a class action, arguing that the company should be held accountable for both direct and third-party uses of its models. Legal arguments focus on whether responsibility extends to external applications built using the same underlying AI systems.

The case also highlights broader regulatory challenges surrounding AI-generated content, particularly the difficulty of preventing misuse when systems can modify real images. Questions around platform liability, safety standards, and enforcement are likely to shape future policy discussions.

Growing scrutiny of AI developers reflects increasing concern over how generative systems are deployed, especially in contexts involving sensitive or harmful content.

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EU competition regulators expand scrutiny across the entire AI ecosystem

Competition authorities in the EU are broadening their oversight of the AI sector, examining every layer of the technology’s value chain.

Speaking at a conference in Berlin, Teresa Ribera explained that regulators are analysing the full ‘AI stack’ instead of focusing solely on consumer applications.

According to the competition chief, scrutiny extends beyond visible AI tools to the systems that support them. Investigations are assessing underlying models, the data used to train those models, as well as cloud infrastructure and energy resources that power AI systems.

Regulatory attention has already reached the application layer.

The European Commission opened an investigation in 2025 involving Meta after concerns emerged that the company could restrict competing AI assistants on its messaging platform WhatsApp.

Following regulatory pressure, Meta proposed allowing rival AI chatbots on the platform in exchange for a fee. European regulators are now assessing the proposal to determine whether additional intervention is necessary to preserve fair competition in rapidly evolving digital markets.

Authorities have also examined concentration risks across other parts of the AI ecosystem, including the infrastructure layer dominated by companies such as Nvidia.

Regulators argue that effective competition oversight must address the entire technology stack as AI markets expand quickly.

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EU privacy watchdogs warn over US plans to expand traveller data collection

European privacy authorities have raised concerns about proposed changes to the Electronic System for Travel Authorisation that could require travellers to the US to disclose extensive personal information, including social media activity.

The European Data Protection Board, which coordinates national data protection authorities across the EU, sent a letter to the European Commission asking whether the institution plans to intervene or respond to the updated requirements.

A proposal that would apply to visitors entering the US through the visa-waiver programme for short stays of up to 90 days.

Under the proposed changes, travellers may be required to provide details about their social media accounts covering the previous five years.

Authorities could also request personal data about family members, including addresses, phone numbers and dates of birth, information that privacy regulators argue is unrelated to travel authorisation.

Watchdogs also questioned how EU citizens could exercise their data protection rights once such information is transferred to US authorities, particularly regarding storage periods and potential misuse.

Parallel negotiations between the EU and the US have also attracted attention.

Discussions around a potential Enhanced Border Security Partnerships framework could allow US authorities to seek access to biometric databases held by European countries, including facial scans and fingerprint records.

European privacy regulators warned that such measures could raise significant concerns regarding fundamental rights and personal data protection for travellers from the EU.

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Google outlines roadmap for safer generative AI for young users

Google has presented a strategy for developing generative AI systems designed to protect younger users better better while supporting learning and creativity.

The approach emphasises building conversational AI experiences that balance innovation with safeguards tailored to children and teenagers.

The company’s framework rests on three pillars: protecting young people online, respecting the role of families in digital environments and enabling youth to explore AI technologies responsibly.

According to Google, safety policies prohibit harmful content, including material linked to child exploitation, violent extremism and self-harm, while additional restrictions target age-inappropriate topics.

Safeguards are integrated throughout the AI development lifecycle, from user input to model responses. Systems use specialised classifiers to detect potentially harmful queries and prevent inappropriate outputs.

These protections are also applied to models such as Gemini, which incorporates defences against prompt manipulation and cyber misuse.

Beyond preventing harm, Google aims to support responsible AI adoption through educational initiatives.

Resources designed for families encourage discussions about responsible technology use, while tools such as Guided Learning in Gemini seek to help students explore complex topics through structured explanations and interactive learning support.

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EU explores AI image generation safeguards

The Council of the European Union is examining a compromise proposal that could introduce restrictions on certain AI systems capable of generating sensitive synthetic images.

The discussions form part of ongoing adjustments to the EU AI Act.

A proposed measure that would primarily address AI tools that generate illegal material, particularly content involving the exploitation of minors.

Policymakers are considering ways to prevent the development or deployment of systems that could produce such material while maintaining proportionate rules for legitimate AI applications.

Early indications suggest the proposal may not apply to images depicting people in standard clothing contexts, such as swimwear. The distinction reflects policymakers’ effort to define the scope of restrictions without imposing unnecessary limits on common image-generation uses.

The debate highlights broader regulatory challenges linked to generative AI technologies. European institutions are seeking to strengthen protections against harmful uses of AI while preserving space for innovation and lawful digital services.

Further negotiations among the EU institutions are expected as lawmakers continue refining how these provisions could fit within the broader European framework governing AI.

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Dutch court increases pressure on Meta over non-profiling social media feeds

A court in the Netherlands has increased potential penalties against Meta after ruling that changes to social media timelines must be implemented urgently.

The decision raises the potential fine for non-compliance from €5 million to €10 million if required adjustments are not applied to Facebook and Instagram feeds.

Judges at the Amsterdam Court of Appeals said users must be able to select a timeline that does not rely on profiling-based recommendations.

The ruling follows a legal challenge from the digital rights organisation Bits of Freedom, which argued that users who switched away from algorithmic feeds were automatically returned to them after navigating the platform or reopening the application.

The court concluded that the automatic resetting mechanism represents a deceptive design practice known as a ‘dark pattern’.

Such practices are prohibited under the EU’s Digital Services Act, which requires large online platforms to provide greater transparency and user control over recommendation systems.

Judges acknowledged that Meta had already introduced several technical changes, although not all required measures were fully implemented. The company must ensure that the non-profiling timeline option remains active once selected, rather than reverting to algorithmic recommendations.

The dispute also highlights regulatory tensions within the European framework. Before turning to the courts, Bits of Freedom submitted a complaint to Coimisiún na Meán, the national authority responsible for overseeing Meta’s compliance with the EU rules.

According to the organisation, the lack of progress from regulators encouraged legal action in Dutch courts.

Meta indicated that the company intends to challenge the decision and pursue further legal proceedings. The case could become an important test of how the Digital Services Act is enforced against major online platforms across Europe.

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Australia introduces strict online child safety rules covering AI chatbots

New Age-Restricted Material Codes have begun to be enforced in Australia, requiring online platforms to introduce stronger protections to prevent children from accessing harmful digital content.

The rules apply across a wide range of services, including social media, app stores, gaming platforms, search engines, pornography websites, and AI chatbots.

Under the framework, companies must implement age-assurance systems before allowing access to content involving pornography, high-impact violence, self-harm material, or other age-restricted topics.

These measures also extend to AI companions and chatbots, which must prevent sexually explicit or self-harm-related conversations with minors.

The rules form part of Australia’s broader online safety framework overseen by the eSafety Commissioner, which will monitor compliance and enforce the codes.

Companies that fail to comply may face penalties of up to $49.5 million per breach.

The policy aims to shift responsibility toward technology companies by requiring them to build protections directly into their platforms.

Officials in Australia argue the measures mirror long-standing offline safeguards designed to prevent children from accessing adult environments or harmful material.

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Europe pressed to slow digital age-verification push amid privacy fears

Hundreds of academics urged governments to halt plans for mandatory age checks on social media, rather than accelerating deployment without assessing the risks.

The warning arrives as several European states consider restrictions on children’s access to online platforms and as companies promote verification tools such as live selfies or uploads of government-issued IDs.

Researchers argue that current systems expose people to privacy breaches, security vulnerabilities and malicious sites that ignore verification rules instead of offering meaningful protection.

They say scientific consensus has not yet formed on the benefits or harms of age-assurance technologies, making large-scale implementation premature and potentially discriminatory.

The letter stresses that any credible system would require cryptographic safeguards for every query, protecting data in transit rather than leaving identity checks to platforms without robust technical guarantees.

Academics believe such infrastructure would be complex to build globally and would create friction that many providers may refuse to adopt.

Concern escalated after early deployments in Italy and France, where verification is already mandatory.

Signatories, including Ronald Rivest and Bart Preneel, warn that governments risk introducing a socially unacceptable system that increases exposure to data misuse instead of ensuring children’s safety online.

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Australia begins a landmark study on social media minimum age

eSafety Commissioner has launched a major evaluation of Australia’s Social Media Minimum Age to understand how platforms are applying the requirement and what effects it is having on children, young people and families.

The study aims to deliver robust evidence about both intended and unintended impacts as the national debate on youth, wellbeing and digital environments intensifies.

Over more than two years, the research will follow more than four thousand children and families in Australia, combining surveys, interviews, group discussions and privacy-protected smartphone tracking.

Administrative data from national literacy assessments and health systems will be linked to deepen understanding of online behaviour, wellbeing and exposure to risk. All research materials are publicly available through the Open Science Framework to maintain transparency.

The project is led by eSafety’s Research and Evaluation team in partnership with the Stanford University Social Media Lab and an Academic Advisory Group of specialists in mental health, youth development and digital technologies.

Young people themselves are shaping the study through the eSafety Youth Council, ensuring that the interpretation reflects lived experience rather than external assumptions. Full ethics approval underpins the methodology, which meets strict standards of integrity and privacy.

Findings will be released from late 2026 onward, with early reports analysing the experiences of children under sixteen.

The results will inform a legislative review conducted by Australia’s Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts.

eSafety expects the evaluation to become a major evidence source for policymakers, researchers and communities as the global conversation on minors and social media regulation continues.

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