Italy fines Character.AI owner
Analysis based on 6 articles · First reported Jul 09, 2026 · Last updated Jul 10, 2026
The fine is relatively small but signals increased regulatory scrutiny on AI platforms used by minors in Europe. Character.ai may face product changes and added compliance costs, while the broader AI industry could see tighter age-verification and privacy requirements.
Italy's data protection authority, the Garante, fined Character.ai, the U.S.-based owner of the generative AI platform Character.ai, €158,000 ($180,500) for breaches of data protection rules. The regulator found several privacy violations, including shortcomings in information provided to users about the processing of their personal data, and raised concerns about safeguards for minors and the effectiveness of age-verification procedures. The Garante also said the company was late in conducting a Data Protection Impact Assessment (DPIA) and appointing an EU representative. The authority ordered Character.ai to ensure its age-verification systems work correctly, implement mechanisms to prevent previously blocked minors from re-registering, and set minors' profiles to private by default, with a 120-day deadline to report measures. The fine adds to Italy's role as one of Europe's most active AI privacy enforcers, following similar actions against OpenAI's ChatGPT in 2023 and the AI companion app Replika.
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