I am curious what happens if they call their bluff on this and cut off ChatGPT in Germany. Not that I think OpenAI is doing the right thing, just, I don’t think a country’s government can justify no commercial LLMs to its populace.
There are 80 million Germans. If you where OpenAI, or it's shareholders, would you leave that market open for a competitor? No, you'd make a version of your product without the lyrics. More EU countries are going to follow and reach the same conclusion, especially now that Germany has set a legal precedence. Should OpenAI just pull out of a market with 500 million people and leave it to Claude, Perplexity or someone…
That's not how laws and regulations work in European or even EU countries. Courts/the legal system in Germany can not set legal precedents for other countries, and countries don't use legal precedents from other countries, as they obviously have different laws. It could be cited as an authority, but no one is obligated to follow that.
What could happen for example, would be that EU law is interpreted through the CJEU (Court of Justice of the European Union), and its rulings bind EU member states, but that's outside of what individual countries do.
Sidenote, I'm not a English native speaker, but I think it's "precedent", not "precedence", similar words but the first one is specifically what I think you meant.