European Commission launches formal proceedings against xAI's Grok AI chatbot

The European Commission has opened formal proceedings against Elon Musk’s social media platform X after its artificial intelligence chatbot Grok was found producing sexual images of real people without their permission, including pictures of children.

People using X have been making AI-altered versions of actual photographs by asking Grok to create them. A study released last week by the Centre for Countering Digital Hate found that Grok made roughly three million deepfake images of women and children in just a few days.

The controversy has prompted calls for investigations in several countries. In Ireland, a number of government ministers have closed their X accounts in response.

Regina Doherty, a member of the European Parliament from Fine Gael, confirmed the Commission’s move against the company in a statement released this morning. She said she supported the decision to start a formal investigation.

“When credible reports emerge of AI systems being used in ways that harm women and children, it is essential that EU law is examined and enforced without delay,” Doherty said.

She added that the case brings up serious concerns about whether platforms are following their legal responsibilities to check for risks and stop illegal and harmful material from spreading.

Doherty emphasized that the investigation needs to result in actual consequences.

“No company operating in the EU is above the law,” she stated.

She also pointed out that the situation shows bigger problems in how new AI technology is being regulated and monitored, asking for more steps to be taken at the EU level.

“This case underlines why the AI Act must remain a living piece of legislation. If gaps in enforcement or oversight become clear, then it is our responsibility to address them. EU laws must be enforceable in real time when serious harms occur,” Doherty said.

Investigation delayed due to Greenland crisis

According to German news source Handelsblatt, the Commission had planned to start the proceedings under the EU’s Digital Services Act last Monday, but the decision was pushed back as the bloc dealt with US President Donald Trump’s threats to take over Greenland.

This is not the first time X has faced trouble with EU regulators. In December 2025, the platform received a €120 million fine from the EU for breaking the Digital Services Act. The violations included misleading blue checkmarks, not being transparent about advertising, and preventing researchers from accessing the platform.

Trump administration officials had strong words about that fine. Secretary of State Marco Rubio and Vice President JD Vance both criticized it heavily, calling it an attack on American technology platforms.

Focus on risk assessment and content moderation

The latest investigation focuses specifically on whether X properly assessed the risks of its AI chatbot and took enough steps to prevent the creation and spread of harmful content. The Digital Services Act requires large online platforms to identify and address risks related to illegal content and harm to users.

The rapid production of such a large volume of inappropriate images in such a short time period raised alarm bells among digital safety advocates and lawmakers.

The situation has become a test case for how EU regulations will handle emerging AI technologies. While the AI Act has been passed to govern artificial intelligence systems, this case is being pursued under the Digital Services Act, which covers online platform responsibilities.

The investigation could lead to additional fines or requirements for X to change how Grok operates. The Commission has the power to impose penalties of up to six percent of a company’s global annual revenue for serious violations of the Digital Services Act.

X has not yet publicly commented on the new investigation. The company’s handling of the situation will be closely watched as other countries consider their own regulatory responses. Multiple nations have already demanded urgent action to address the chatbot’s ability to create inappropriate images.

Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.