EU draft Digital Fairness Act targets AI companion bots, 6% fines

The European Commission's draft Digital Fairness Act names "AI chatbot functions that simulate interpersonal relationships to prolong engagement" as a feature category that adult users must be allowed to switch off, Bloomberg reports. Companies found to use unfair digital trade practices could face fines of as much as 6% of annual global turnover.

Justice Commissioner Michael McGrath will present the proposal on Wednesday, November 11. From there it needs to be negotiated with EU countries and the European Parliament before it can become law.

The chatbot clause sits alongside a blacklist of ten manipulative online design practices. The leaked list includes "false claims that stock is running low, pre-ticked add-ons, and nagging pop-ups." On the engagement side, users would gain the right to switch off autoplay, notifications unrelated to their own activity, streak-style rewards and the relationship-simulating chatbot features.

Not every EU official is on the same page. McGrath has reportedly argued for stronger direct enforcement powers, while digital chief Henna Virkkunen warned that overlapping obligations could make the EU rulebook harder to apply. The DFA will have to co-exist with the Digital Services Act and the AI Act.

It lands into a crowded regulatory beat. Our regulation tracker has logged 277 AI-policy stories over the last 90 days, but this is the first draft on our radar to put companion-style chat features in the same category as auto-play and streaks.