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POLICY & REGULATIONOpenAI2026-05-15

OpenAI's KOSA Endorsement Drew Criticism as Potential 'Regulatory Capture'

Key Takeaways

  • ▸OpenAI endorsed KOSA, drawing accusations of regulatory capture—shaping safety legislation to benefit industry interests
  • ▸Congressional calls for accountability follow legal verdicts in California and New Mexico holding Big Tech liable for child exploitation
  • ▸Critics argue that tech company endorsements of safety legislation may undermine rather than strengthen child protection measures
Source:
Hacker Newshttps://www.techdirt.com/2026/05/14/openais-kosa-endorsement-is-regulatory-capture-with-a-smiley-face/↗

Summary

OpenAI faced criticism for endorsing the Kids Online Safety Act (KOSA), with critics arguing the company is engaging in regulatory capture—shaping legislation nominally designed to protect children in ways that benefit the industry itself. The endorsement comes amid Congressional pressure to hold Big Tech companies accountable for exploiting children online, following legal verdicts in California and New Mexico that found platforms guilty of enabling predatory behavior.

Congress is increasingly focused on establishing guardrails for virtual spaces, with lawmakers citing the need for legislation that goes beyond "lip service" to meaningfully protect minors. The timing of OpenAI's endorsement is controversial, as it suggests the company may be attempting to influence how regulation unfolds rather than supporting stricter, industry-agnostic protections.

The question of whether KOSA-related enforcement will target platforms like Roblox—which has faced persistent child safety concerns—remains open. Critics worry that Big Tech endorsements of safety legislation may be designed to pre-empt stronger enforcement actions or shape rules in their favor.

Government & DefenseRegulation & PolicyEthics & BiasPrivacy & Data

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