“The government has taken its first step to regulate OpenAI’s generative AI, ChatGPT. The Korea Communications Commission (KCC) announced today (27th) that it has launched an investigation to determine whether ChatGPT’s payment service practices, such as restricting service usage limits and user’s cancellation limitations, violate the Telecommunications Business Act.
The investigation is expected to focus on whether users were fully informed and consented to limitations on daily service usage, and whether immediate cancellations and refunds are provided appropriately.
If the investigation confirms violations, the KCC may issue corrective orders or impose fines after a resolution in the full committee meeting. Fines can be imposed as a fixed amount or calculated based on a percentage of the service’s revenue. Observers suggest that fines could amount to hundreds of millions of Korean won, as seen in previous cases involving big tech companies.
Although a resolution has not yet been reached, it’s noteworthy that in October last year, the KCC announced fines of 47.5 billion won for Google and 20.5 billion won for Apple over in-app payment issues.
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